Average national house prices to rise by 5.5% in 2013 with total growth of 28.7% over next 5 years
Prime central London to average 8% per annum growth between 2013 - 2017
Regional divide to persist, led by the South with East Anglia outperforming London and South East between 2013 - 2017
The UK housing market is continuing to show a positive outlook as market conditions improved considerably in the first five months of 2013, according to Chesterton Humberts' mid-year forecast. Over the next six months, it is projected that average national house prices will rise by 5.5%, with total growth exceeding 28% between 2013-2017.
Despite the extended winter and concerns about the economy lurching back into a triple dip recession, the sector saw an increase in transaction numbers and house prices as well as a significant improvement in consumer confidence due to banks offering record low fixed rate deals and the introduction and extension of various Government initiatives.
The combination of these factors has helped boost activity in the market, acting as the much needed catalyst to release the pent-up sales demand from aspiring buyers who have been waiting to seize the right opportunity.
Nick Barnes, head of Chesterton Humberts' research department, comments:
"There has been a notable uptick in market activity so far this year, in no small measure due to the greater availability of record low mortgage deals.
We have seen green shoots flatter to deceive before, however, this time around the level of consumer confidence appears more robust and if favourable mortgage finance remains available, the long awaited recovery may at last be sustained. What we need in tandem with this upswing, however, is an increase in housing supply to mitigate any potential price bubble".
Chesterton Humberts' is predicting that East Anglia will outperform London for the first time since August 2005, enjoying average increases of 6.3% per annum between period 2013-2017, compared to London's 6.2%.
Prime London is set to average 8% annual growth as it continues to exert a disproportionate influence on overall price growth in the capital, driven by strong international demand and short supply.
Despite the South continuing to outperform the rest of the country, Chesterton Humberts also projects that total growth in the other regions will all improve with East Midlands and Yorkshire & Humber increasing to over 25% followed by West Midlands (19.6%), North West (18.3%) and North East (11.8%).
