House prices predicted to rise by double the average salary
The latest report from the Centre of Economics and Business Research shows that house prices are set to soar by a national average of nearly £60,000 in the coming five years. The jump will leave the average home costing £321,600 by the end of 2020. This leap is nearly double the average salary of £31,625 which is based on new roles advertised during summer 2015. The report also shows that the rungs of the property ladder are moving further apart and making it harder for people to move and upsize their homes.
The predicted sharp increase in values is driven by the ongoing shortage for homes and the lack of supply is continuing to put upward pressure on property prices. This has caused Cebr to revise its previous forecast for house price growth in 2015 from 4.7% to 5.6%. It also expects further growth of 3.5% in 2016 followed by a jump of at least 4% between 2017 to 2020.