House prices in the UK are being forecast to rise by as much as 5% between now and the close of this year, despite the recession that is expected to hit the country during that period.
This prediction is coming from estate agents Benham and Reeves and would see the average price of a home in the UK go up by another £14,000. In turn, this would leave the average UK home valued at £300,717 by the time 2022 comes to an end. Given the general economic situation within the country, many consider this to be a remarkable prediction
Experts are suggesting that the recession and cost of living inflation will certainly last until well into next year. It was expected that this would reduce demand among buyers and thus lead to a drop in house prices too. However, Marc von Grundherr from Benham and Reeves told Financial Reporter that there were no indicators of the latter.
He then added:
“The pandemic-inspired boom in demand and value has supercharged the housing market to such an extent that it seems even a cost of living crisis and soaring interest rates can’t stop it in its tracks.”
London and the South East are the regions that are predicted to see the highest rises in prices, with prices in the capital going up by £26,896 and those in the South East by £19,526.
Advisors who have the CeMAP mortgage advisor qualification will have to find lenders outside of the mainstream who can help buyers faced by rising living costs and house prices.
