After it has been widely documented that the UK housing market has recovered significantly during 2014, CBRE now reports that house price growth will in fact reach 12% by the end of the year. In its latest Regional Land Report, the global property services firm has also suggested that the market will remain strong for at least the next five years.
The report also indicates that positive house price growth will continue across the UK from 2015 to 2019 at a more sustainable rate of 30 per cent with London, the South East and the South West predicted to record the highest regional increases.
Jennet Siebrits, CBRE’s Head of Residential Research remarked that the significant house price growth experienced in the UK over the last year is indicative of a recovery and that as the recovery becomes more established, house price increases will occur at more sustainable levels.
“London has dominated the housing market in recent years and recorded particularly strong house price growth, but there is now an evident ripple-out effect with increases recorded across all UK regions. While growth has generally been lower outside of London and South East, we expect some element of catch up from the other UK regions to occur over the medium to long term,” she said.
Siebrits concluded by saying that when interest rates inevitably rise it will be at a slow rate, meaning that the impact on mortgage affordability will be minor.
Rugby estate agents Cadman Homes have reported a continually strong market in the Rugby area too. With Rugby being the fastest growing town in the West Midlands, there is strong demand for new homes, and traditional houses in Rugby, especially in the more popular areas such as Hillmorton and Bilton. There is also strong demand for properties close to Rugby train station.