London house price rises to slow
London house prices are set to flatline in 2015 and will grow at half the rate of those across the country generally for the next five years, according to forecasts.
The south-east and the east of England will show the strongest property price growth in the UK between now and 2019 as buyers look for value outside the English capital, a report from Savills said.
But as prices continue to head upwards, Savills also predicts that the number of households which are privately renting in England and Wales will surge by 1.2 million over the next five years as the struggle for younger generations to get on the housing ladder continues.
Savills forecasts that UK house prices will increase by around 19.3% by the end of 2019 to reach £225,250 on average, which is around £36,500 more than the current typical property value.
But values in London will only see 10.4% growth across the five-year period, with prices in the capital already having already jumped by around 15% this year alone, it predicts.
This prediction would mean the average London house price increased to £442,783 by the end of 2019, which is around £41,700 more than it is now.
Savills has pencilled in 0% growth for property prices in London across 2015.
Prices should then start to lift there again from 2016 onwards, it said.
By contrast, the south-east will see prices jump by 26.4% over the coming five years.