Homeowners in the UK will benefit from their properties rising in value by an average of 22.8 per cent over the next five years - and by buying in the right areas people can enjoy an even greater gain.
A new study by property JLL has identified the south-east as a particularly profitable place to buy, with house prices set to increase by 26.4 per cent across the region by 2020. Meanwhile, a 25.8 per cent hike is predicted in eastern England and a 24 per cent rise is expected in Greater London.
It means the average south-east home currently worth £256,737 could soar in value to £324,540 in five years’ time.
Kevin Shaw, national sales director at property specialist Leaders, says: “House prices have been on the rise for some time and this shows no sign of coming to an end. Figures just published by the Halifax show that UK house prices are now 9.7 per cent higher than they were this time last year.
“This significant increase is a result of a number of factors which have strengthened demand. These include greater economic stability which has led to improved employment and household finances, along with continued low interest rates.
“Increased demand from people wanting to get onto or move up the property ladder, combined with a general lack of supply of property coming onto the market, has resulted in the price rises we are seeing across the country. Those who have opted not to sell in recent years following a period of economic uncertainty can now take advantage of increased stability and positivity in the market and make that long-awaited move with confidence.”
Buying a property in any part of the UK is forecast to be a move that will pay off over the next half-decade; after all, every region is set to record house price growth of at least 17 per cent, according to the research.
However, individuals can still enjoy higher-than-average capital growth by purchasing a home in certain areas.
Manchester is one city identified by the study as likely to prosper and outperform its regional market in terms of house price growth by 2020, with its status as a key employment hub ensuring high demand is likely.
More people are moving out of central London and into zones on the outskirts of the capital, so these too could be ideal places in which to secure a property with a view to achieving a good financial return.
For more information on buying or selling a property in your area, please contact your local Leaders branch today.