Slowdown in house price growth expected by end of year

October 4, 2021 by Brendan O'Neill

House Prices

The latest Hamptons Housing https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Forecast is predicting that the surge in UK house price growth will slow down between now and the end of the year, finishing 2021 at roughly 4.5%.

However, figures included in this report also suggest that growth levels across the country will remain positive for the next three years, due to the pent-up demand for properties that the second national Covid-19 lockdown created. The Hamptons Forecast indicates that the growth for next year will be 3.5%, followed by 3.0% for 2023 then 2.5% for 2024.

It also states that the rate of growth will be lowest in the capital until this growth period concludes in three years’ time. Between now and the year-end, London prices are expected to rise by 1.5%, followed by a further 1.0% rise next year, 1.5% during 2023 and then to jump up by 3.0% in 2024. It should be noted that London already has the highest prices.

The region expected to see the strongest growth is the North East, with a 21.5% rise in prices for the final quarter of 2024 alone.

Speaking to Mortgage Introducer, Hamptons’ Head of Research, Aneisha Beveridge, said that market growth had surprised everyone, adding:

“Back in the autumn of 2020, such were the economic challenges being faced that we could not have envisaged the extraordinary demand for relocation which we have seen this year.”

This makes buying a home more challenging for prospective homeowners, and advisors with a CeMAP qualification may need to turn more to specialist products.