House Prices Up 60000 by 2020

House Prices Up £60,000 by 2020.

House prices look set to rise on average by £60,000 by the year 2020 according to the Centre for Economics and Business Research forecasts and our own assumptions.

The CEBR has revised upwards its house price forecasts for the following years:

2015 – 5.6%

2016 – 3.5%

2017 – 4.2%

The latest average house price for the United Kingdom is £195,585 according to the Nationwide Property Index. We estimate this means that if property prices continued with the same stable trend in the years 2018, 2019 and 2020 the average house price would be £253,676, some £58,000 higher.

Given that the population of London is set to expand by an estimated 1 million people in the next five years, we expect London property prices to increase at an even higher rate. In addition, the population of the UK as a whole has been estimated by the Office for National Statistics to increase by another 10 million people in the next 10 to 15 years meaning that property prices will continue to escalate as the current government and indeed the past government did not and do not have concrete plans to build new homes to keep pace with the increased population explosion.

As ever, in the words of Mark Twain: "buy land, they are not making any more".