House Prices up by a 3rd in 5 years?

Forget the doom and gloom of current indices – average house prices in England and Wales are set to increase by 30 per cent in the next five years according to a Rightmove forecast.

In London the rise will be 33 per cent and across the south east the increase is set to be 37 per cent by 2019. But – perhaps unsurprisingly – the north west will be the slowest riser according to the forecast, although it will still go up by 24 per cent.

The new forecast comes from a collaboration between Rightmove and forecasting consultancy Oxford Economics. It describes itself as the most comprehensive house price forecast of its kind ever created, based on property and economic data rather than opinion and short-term market factors.

It takes into account both asking and sold prices, surveyor valuations and analytics from the Oxford Economics’ forecasting models.

The majority of fastest performing areas are all within easy commuting distance of London – towns such as Southampton (up 43 per cent), Luton ( up 41 per cent) and Brighton (up 41 per cent) – with the home counties and outer boroughs set to benefit from the ripple effect of a year of strongly rising prices in London, alongside the brighter economic picture.

West London is predicted to be caught in the prime London slowdown with a modest rise of 14 per cent, bringing its potential for future growth in line with the slower northern cities of Carlisle (up 17 per cent) and Manchester (up 19 per cent).