House prices expected to rise by 5% by 2020

Mortgage and asset finance brokers expect house prices to rise by 5% by the end of 2020, United Trust Bank research shows.

Two thirds (65%) predict prices rising by 5% or more, with a third (35%) expecting slower or static growth.

Paul Keay, property development director at United Trust Bank, said: “It’s interesting that despite there being talk from several quarters that the property market is cooling off most brokers expect prices to keep rising for at least the next three years.

“In our experience, the prime London market has seen activity decrease slightly over the last six to nine months and this has translated to lower sales values being achieved in some cases.

“However, on UTB funded developments outside of that small central London bubble, there is still strong demand and sales activity.”

He added: “That would indicate that there’s still plenty of confidence in the new home sector in the wider market, especially when supported by demand side initiatives like Help to Buy.

“Brexit, the UK general election and the spectre of rising inflation and falling growth forecasts create uncertainty.

“However, we should remember that the UK’s housing crisis is not going to simply disappear, whatever happens to the political landscape.

“The only solution is to keep building hundreds of thousands of new homes each year to satisfy demand, and if developers bring well considered proposals for the right projects in the right places, UTB will continue to provide the funding they need to keep building.”

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Written by: Houseladder