Rightmove has rebuffed claims the housing market is heading for a slowdown, with a prediction that prices will increase by 30% over the next five years in England and Wales.
But for the first time in more than a decade, it will be markets outside London that raise the capital that lead the way in price rises. Rightmove predicts that Southampton will see the fastest house price increase in the country with an expected increase of 43% by 2019.
The prospect of house prices rising at the rate forecast by Rightmove will put homes further and further out of the reach of first time buyers. It said the average price in England and Wales will rise from £244,192 to £317,967.
The report claims to be “the most comprehensive house price forecast of its kind ever created, based on property and economic data rather than opinion and short-term market factors. It takes into account both asking and sold prices, surveyor valuations and analytics from the Oxford Economics’ global, industry and regional forecasting models.”
The figures contrast with widespread reports of a cooling in the property market after the frenetic rate of increases in the past year and a possible rise in interest rates next year. On Thursday, the Royal Institution of Chartered Surveyors said prices in London fell for the first time since January 2011, ending the longest unbroken run of increases in more than 20 years.
With this raise in house price predicted, now is a better time than ever to go into the buy-to-let market.
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