The average house price in the UK is expected to increase by as much as £44,000 over the course of the next five years according to new research.
According to economic forecasters, the Centre for Economics and Business Research (Cebr), the average house price in the UK is expected to rise to £254,000 by 2021 based on the trajectory of the market.
The current average value for a residential property in the UK stands at around £210,000 according to the report, with the organisation projecting total growth of 6.9% over the course of 2016.
In their report, Cebr highlighted that the performance of the market in 2016 has been in spite of a number of challenges.
The introduction of a new stamp duty surcharge on buy-to-let property purchases on April 1 led to a surge of purchasing in Q1, prior to any impact being felt following the results of the EU referendum in June.
Following on from the continued performance of the UK property market in 2016, Cebr highlighted their expectations that property price growth will experience a slight decrease in pace in 2017, as the market reacts to the ongoing Brexit negotiation process.
According to the forecasters: ‘For consumers, we expect rising inflation and increasing unemployment to squeeze disposable incomes. Weaker business investment is likely to weigh additionally on economic growth.’
Projections of continued growth in the years ahead follows the release of official figures from the Office for National Statistics (ONS), which found that house prices continued to rise in August, with growth of 8.4% year-on-year.