As 2018 draws to a close, housing market commentators publish their predictions for the year ahead. An average of the views places house price growth at 0.1% for 2019, although HM Treasury’s average forecast is more optimistic at 2.2%.
Both the agent research departments and the Treasury forecasts become more closely aligned in 2021 at between 2.8% and 3% growth in average UK house prices. The overall trend is for growth every year
The agents are predicting a total of 10.9% growth after five years, with HM Treasury’s average forecast expecting that will be achieved after just four years (end of 2022).
All of the forecasts are based on a set of assumptions, namely that a Brexit deal is agreed and that there is a transition period. Also that this will remove the uncertainty that has hung over the market since the referendum and it should help to ensure that the UK’s economy continues to grow, and consumer confidence will be reinstated. These factors would fuel an appetite for house purchases.
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