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London faces lowest rate of house price growth

London faces lowest rate of house price growth
 Credit: Chris J. Ratcliffe/Bloomberg

The capital is predicted to see the lowest rate of property price growth by 2024.

Analysis from data company PropertyData., based on multiple forecasts including from Knight Frank, the Office for Budget Responsibility and Savills, found London is expected to see a rate of growth of 9.1 per cent over the next four years.

But with the highest average house price being in the capital, further analysis by estate agent comparison site GetAgent found London was also forecast to see the largest nominal increase of £43,644 by 2024.

In comparison, the North West and Yorkshire and the Humber are predicted to see the largest percentage uplifts of 14.9 per cent and 14 per cent, to reach £191,498 and £189,021 respectively.

Colby Short, founder and CEO of GetAgent.co.uk, said: “[The] long-term view of the market is good and the general consensus is that a more subdued but stable rate of growth should prevail.

“While this will result in a slower rate of house price growth to what we’re seeing currently, it should ensure positive movement across the UK market, with house prices increasing substantially regardless of where you live.”

The average house price across the UK is predicted to rise by 14.5 per cent by 2024, from £233,635 to £267,512, according to PropertyData and GetAgent.

But Mr Short also warned of a dip in price growth in the coming months, especially in the lead up to the stamp duty holiday deadline.

This comes after the latest Halifax house price index found that while house price growth had continued to “beat expectations”, it was “highly unlikely” the housing market would continue to remain “immune” to the economic impact of the coronavirus pandemic.

chloe.cheung@ft.com

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