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Cebr: UK House Prices Set to Rise over Next Five Years

Despite the UK’s decision to leave the European Union, new research indicates that UK house prices are set to increase post-Brexit.

Cebr Forecast £40,000 House Price Increase by 2021

Despite the UK’s decision to leave the European Union, new research indicates that UK house prices are set to increase post-Brexit.

The Centre for Economics and Business Research (Cebr) have released their latest forecasts, with the data suggesting that house prices in the UK could increase by as much as £40,000 by 2021.


Analysing data from the housing market following Brexit, the research group indicate that there is likely to be an overall arc of growth in property values in the UK, driven by the continued undersupply of residential housing across the country.


According to Cebr, the average house price will rise from £194,000, as it stands in 2016, to £234,000 at the end of this decade.


Commenting on the rate of growth in the UK, Cebr’s senior economist, Nina Skero, said: ‘Although Brexit has certainly sent shockwaves, Cebr expects the housing market to slow down but not plummet.


‘Years of underbuilding mean that demand would have to fall very dramatically to meet the low level of supply increases. Keeping in mind that construction companies are very likely to limit their output further in light of Brexit, price pressures will also come from the supply side.’


In the medium term, the figures indicate a slowdown in growth over the course of the next two years. According to Cebr, the rate of house price growth for 2016 stood at 8% prior to Brexit. Following the referendum, this has been revised down to 5.7%.


In 2017, the group anticipates that the growth within the UK property market will stand at 2.2%. However, Cebr have stated that they expect 2017 to be a blip in the UK’s continuing house price growth cycle.

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