Buy To Let
House prices ‘to jump 18.1% by 2017’
UK house prices are expected to rise by 18.1% by the end of 2017, estate agency Savills has said.
Savills has upped its its forecasts for 2013 from 0.5% to 3.5% with London growth predicted to be around 6% for the year.
“A combination of low interest rates and stimulus measures means there is capacity for improved price growth over the next three years or so,” said Lucian Cook, director of Savills residential research.
“But it comes at the price of later price growth in 2016/17 when interest rates are expected to start rising.”
He added that government intervention in the market was fostering confidence among consumers and would push house prices higher.
“Help to Buy goes further than any of its predecessors in being aimed at all buyers, not just first-time buyers, but we believe its primary impact will be increased transaction levels and that higher than expected price growth is a secondary impact.
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“Its launch into an improving market has triggered concerns that the government will provoke another bubble. But, in our view, these are overstated given the conditions which attach to the scheme.”