Estate agent Savills predicts house prices will rise 2.5% this year
House prices will rise by 2.5 per cent this year amid an improving economic outlook and lower mortgage costs, property company Savills has predicted.
He previously expected prices to fall 3 percent.
Savills’ forecast is the latest to take a more optimistic view. Lloyds, Britain’s largest mortgage lender, also recently said it expects prices to rise this year. Lucian Cook, head of residential research at Savills, said the outlook had improved since its last forecast in November.
“Mortgage costs have come down slightly and are much less volatile,” Cook said.
Savills also upgraded its long-term outlook, predicting prices will rise 21.6 per cent by the end of 2028, equating to £61,500 added to the value of a home with a typical value of £285,000 by the end of 2023.
It comes as the UK’s economic fortunes rebound after last year’s recession.
Figures released this week by the Office for National Statistics are expected to show the economy grew by 0.4 per cent in the first quarter of this year, ending the slowdown.