House Price Predictions for the Next Five Years: Our Expert Analysis
As the UK’s leading property experts, we’ve conducted an in-depth analysis of the current market trends and made some bold predictions about the future of house prices over the next five years.
In this article, we’ll share our insights with you and explain what factors are likely to influence the direction of the market. So, if you’re thinking of buying or selling a property, read on to find out what the future may hold.
The Current State of the UK Property Market
Before we can make any predictions about the future, it’s important to understand the current state of the UK property market.
In recent years, house prices have been on a steady upward trajectory, driven by a combination of low interest rates, high demand, and a shortage of supply. However, the COVID-19 pandemic has had a significant impact on the market, with lockdowns and economic uncertainty leading to a slowdown in activity.
Despite this, the market has remained surprisingly resilient, with house prices continued to rise in many areas. In fact, according to the data from the UK House Price Index, the average price of a property in the UK increased by 8.6% in the year to February 2021.
However, with the Ukraine war, interst rates on the increase and US banks in trouble not to mention inflation worldwide and the cost of living house prices are set to tumble in 2023 to 2026.
Our House Price Predictions for the Next Five Years
So, what can we expect from the UK property market over the next five years? Based on our analysis, we predict that house prices will decline. Here are our key predictions:
House Prices Will fall by at least by 15% by 2026
We believe that the average price of a property in the UK will decrease by at least 15%- over the next five years, reaching around £250,000 by 2026. This growth will be driven by a combination of factors, including:
- Continued high interest rates, making mortgages more expensive
- A severe downturn in world economies.
- Cost mortgages and cost of living will mean more repossessions.
The North-South Divide Will Narrow
Historically, house prices in the South of England have been significantly higher than in the North.
However, we predict that this gap will start to narrow over the next five years, as more people look to move out of expensive cities and into more affordable areas. This trend is already underway, with cities like Manchester and Leeds seeing some growth in recent years. However the downturn in the economy will impact all areas of the UK.
New Builds Will Become More Expensive
One of the biggest challenges facing the UK property market is the shortage of supply, particularly when it comes to affordable homes.
However, we predict that the government’s lack of commitment to building more affordable homes will start to have an impact over the next five years. We believe that new builds will become more expensive behond the reach of amny.
What Factors Could Influence Our Predictions?
Of course, it’s worth noting that there are a number of factors that could influence our predictions over the next five years. Here are a few of the key things to watch out for:
- Changes to interest rates: if interest rates rise significantly, this could have a dampening effect on house prices
- The ongoing impact of the pandemic: if the pandemic continues to cause economic uncertainty, this could also slow down growth in the property market
- Government policy: changes to government policy, such as changes to stamp duty or planning regulations, could also have an impact on the market
Conclusion
Overall, we believe that the UK property market is likely to see a severe downturn over the next five years, with house prices slowly declining now in 2023.
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