House prices could rise more than £50,000 in next five years – but where will they go up most?
House prices will rise by 13 per cent by the end of 2021, on average - pushing up the average price from £214,000 to £242,000
HOUSE prices could rise by more than £50,000 in some areas in over the next five years - but it all hinges on how Brexit negotiations go.
The average house prices accross the country will go up by 13 per cent by the end of 2021, from £214,00 to £241,000, according to Savills - a rise of £27,000 in five years.
The biggest increases will be seen in the South East, East of England and London - where prices could rise by up to 19 per cent, adding over £50,000 on to the value of a property.
However, it depends on how the UK's exit from the European Union goes as this will have a knock-on effect on the housing market.
Savills also had bad news for first-time buyers, with the average rent is expected to go up by almost a fifth (19 per cent) by the end of 2021, while property values are set to increase by 13 per cent, it said.
These figures only get worst if you're looking to rent, or even hoping to buy, in London as rents are on course to rise by a whopping 24.5 per cent.
Jonathan Harris, director of mortgage broker Anderson Harris, told The Sun Online: "With house prices rising far quicker than wages, it is increasingly difficult for first-time buyers to get on the housing ladder.
"The only saving grace is that mortgage rates are so low, which is helping with affordability.
"But increasingly we are seeing first-time buyers team up with their friends to buy a home, as it is the only way they can achieve their home ownership dream."
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And Brexit upcoming negotiations are also playing their part as they're causing house prices to remain flat over the next few years, making it even harder for those looking to buy their first home to afford it.
Lucian Cook, Savills UK head of residential research, said: "What is clear is that the housing market does not like political and economic uncertainty and this points to a lower growth, lower transaction market across the board."
However, not all expert agree on the latest forecast from Savills, Russell Quirk, the founder and CEO of emoov, has a different view.
Russell told The Sun Online: "To attempt to forecast house prices in five years time is a futile occupation and impossible and estate agents can no more see the future of exacting prices in 2021 than they may pick Saturday's winning Lotto numbers."