National average prices to breach 2008 peak within 12 months; London prices to rise by 25% by 2019 – ERC

Prices are likely to carry on up across the country, although London’s growth rate will slow a touch while the rest of the country accelerates until 2015 before hitting a plateau from 2019. This according to the Economics Research Council’s Boom or Bust event at the Royal Geograohical Society, which saw three of the property world’s top pundits weigh-in on the future market.

Gráinne Gilmore (Knight Frank), Matthew Pointon (Capital Economics) and James Wyatt (Parenthia) shared their beliefs and arguements with the group; here’s a summary:

LONDON

  • Average year on year London house price growth was predicted to slow from 16.9% between 2013 and 2014 to 11.5% over the next 12 months
  • However, London’s average house prices will grow by more than 10% in the next year with an average house price given of £485k across all three experts
  • By 2019 house prices will have increased by 25%, with the average property costing £544k

NORTH EAST

  • Average house prices predicted to grow at double the rate of last year at 6%
  • Growth in the North East is predicted to be slow and steady over the next five years
  • House prices won’t reach 2007’s average house price peak of £127k until 2019

ENGLAND & WALES

  • Biggest average house price rises are still expected with all three experts predicting an 8% increase over the next 12 months, an increase of 1.2% on 2014’s average house prices
  • House prices will surpass 2008’s national peak in the next 12 months
  • The rate of price hikes is predicted to decline slowly from 2015 onwards, with property prices beginning to plateau from 2019

ERC Infographic Average house price predictions

Peruse all the major property price predictions for this year on PrimeResi here.

ercouncil.org