Average home value expected to rise 3%

Economists are upping their forecasts for UK house prices, with the value of the average home now predicted to rise by 3% in value over the next year. Experts say the momentum the market gained following the Conservative victory at the general election is likely to continue building up over the next 12 months. Some regions are expected to see price growth of up to 4% this year with the Midlands and the North tipped to lead the way, but the London market is likely to remain subdued. Official figures due to be released next week for house prices in December are predicted to show the first stirrings of the market revival. In the year to November, prior to the General Election, prices were starting to show improvement with a rise of 2.2% compared to 1.3% in the year to October. The EY Item Club, which uses the Treasury's own economic computer model, has now raised its forecast for house price growth from 2% to 3%. “There is pretty compelling evidence that there has been a pick-up,” said Howard Archer, Item's chief economist.

The Mail on Sunday (18/02/2019)