House price to rise £40k over next 5 years

The Centre for Economics and Business Research estimates that the average property price could hit £234,000 by 2021

Despite Britain voting for Brexit, the UK’s property market will still deliver strong levels of capital growth in the short and mid-term.

UK property investors can expect to earn, on average, £40,000 in capital appreciation over the next five years
The Centre for Economics and Business Research estimates that the average property price could hit £234,000 by 2021
Brexit has created an immediate opportunity for international investors to acquire UK assets
Forecasts from an economic think-tank underline the continued strength of UK real estate following Brexit, with strong capital appreciation projections over the next five years.

The average property value in Britain could rise from £194,000 to £234,000 by 2021, netting £40,000 for investors, according to the Centre for Economics and Business Research (Cebr).

While the current 5.7% growth projections for 2016 as a whole are slightly down from the 8% growth figure published earlier in the year, Cebr believe that investors can still expect rises in the value of their assets following April’s introduction of higher rates of stamp duty and the result of the EU referendum in June.

The think-tank believes that the UK’s severe undersupply of housing, combined with the continued rise in demand for accommodation, will see Britain’s historically strong record for house price growth continue while the country negotiates its way out of the EU over the next few years.

Nina Skero, Cebr senior economist and the main author of the report, added: “Keeping in mind that construction companies are very likely to limit their output further in light of Brexit, price pressures will also come from the supply side.”

Interest for UK real estate from overseas has already jumped by as much as 50% since Brexit, as a fall in the value of the pound made property 12% more affordable for those dealing in dollar-pegged currencies. But as the immediate uncertainty created by the vote is lifted, and the pound demonstrates its strength, it’ll be those that act now that stand to gain the most from the opportunity that has just been created.

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Written by: Houseladder