Property prices set to rise 56% by 2027
According to online property experts, eMoov.co.uk, property prices in the UK could rise by as much as 56% over the next ten years. This means that by 2027 the average house price in the UK will be around £346,000.
These figures, which are based on information taken from Land Registry House Price Index, seem to contradict a slight slowdown in house price rises since Brexit. Since the result of the referendum, house prices have risen by around 0.37%, which is slightly lower than the 0.67% increase over the previous 12 months. However, even at that lower rate of growth, that would still see an increase of 56% over the next decade.
By taking figures from the Price Index and averaging these out over the next ten years, eMoov found that the average price rise would be around 56%. However, this could be even bigger in certain areas which have shown signs of even larger growth over the last year. For example, cities like Nottingham and Glasgow have experienced booming markets in recent times. However, this may also be due to an evening out of the market after some years of stagnation in these areas.
AnchorIn more locally relevant news, Norwich is expected to see price rises of around 15% over the next ten years based on these current figures. Taking the average price of a house from £192,000 to £222,000. Although this might be a slightly slower increase than in some other areas, this still represents an excellent investment, particularly when combined with readily achievable rental yields of 8% per annum.
Founder and CEO of eMoov.co.uk, Russell Quirk, said: “With latest industry figures indicating an end to the post-Brexit market slowdown that has seemingly plagued the market over the last 18 months, many UK homeowners will be breathing a sigh of relief, despite having still enjoyed a notable annual increase in their property’s value.
“Although these recent slower rates of price growth are unlikely to persist going forward, and we are by no means predicting they will, this research demonstrates that the outlook would still be rather positive and far from the apocalyptic prophecies many have talked the market down with since the Brexit vote.”
Of course, these predictions are not guaranteed and the market is subject to fluctuations and external influences. However, what this does show is that despite the uncertainty caused by Brexit and a slowdown in price increases, over the long term investing in property is still a very good idea.
If you’d like to know more about investing in the Norwich area, and more detailed predictions about projected returns, then get in touch with our team at Agile.
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