House prices set to surge
An index from Hometrack has suggested that house price growth across the UK’s biggest cities will be stronger this year than previously predicted. Values across the 20 biggest cities are now expected to increase by 6% to 7% over the course of 2017, higher than its previous prediction of 4% made in December 2016. While annual house price growth in London, Bristol, Oxford and Cambridge has slowed, continued robust house price growth in large regional cities, such as Birmingham, Manchester and Leeds, despite uncertainty over Brexit, is behind the raised expectations. Record low mortgage rates and falling unemployment are generally continuing to help support price growth, Hometrack added.
The Times, Page: 42 The Independent, Page: 18 Independent i, Page: 51 The Daily Telegraph
Average prices predicted to hit £300k by 2025
A report from PwC forecasts that average UK house prices could reach £302,000 by 2025, up from last year’s £212,000. The report suggests average prices will climb by 3.7% this year, hitting £220,000, with a similar rate of growth taking average values to £228,000 in 2018. The study offers a focus on the London market saying economic and political uncertainty – coupled with stamp duty reforms – have hit the capital. It notes that the first four months of 2017 saw house price inflation of around 4% in London, down on the 13% seen in the same period of 2016. PwC forecasts that average prices for London homes will climb 2.8% this year and 3.8% in 2018.
Source: Daily Mail, Page: 2 The Guardian, Page: 19