Housing price in the UK will increase by 25% to 2018

Housing price in the UK will increase by 25% to 2018

Savills experts predict that in five years housing prices in the UK will increase, depending on the region, by 17-32%. The annual number of transactions will increase to 1.2 million, but won't reach pre-crisis levels, according to ee24.com citing savills.co.uk.

Over the last year, housing prices in the UK rose by 5%. The number of transactions increased by 15% to 0.96 million, and it is significantly less than in pre-crisis years of 2002-2007, when it exceeded 1.6 million.

For example, in London the average price of 10% most expensive real estate is €1,421 million, sales shrank by 33% since 2007. In the mid-price segment houses can be purchased for €551k, sales dropped by 44%. Objects among 10% cheapest houses and apartments go for €229k, and sales of such housing dropped by 64%.

Own funds still prevails. It's not a surprise that after 2007 buyers try to avoid taking loans.

Prices of prime real estate  (5% of the most expensive properties) will increase in the next year: in Central London by 3%, in its outskirts and suburbs by 6%, in the south of England by 4%, in the north by 3%, and in Scotland by 1%. By 2018, the housing will cost by 23.1% more in the London city centre, by 26.3 % more in its suburbs, and by 18.1% more in Scotland.

As for mainstream market, prices will grow a little faster. The next year, they will increase by 6.5% countrywide: with the biggest increase in London (8.5 %) and the smallest in Scotland (4.5%). By 2018, the UK housing will be 25.2% more expensive: the leader of growth will be the south-east (31.9%), while the north-east will be the outsider (17.6%) .

The number of transactions in residential real estate market will increase to 1.11 million in the next year and to 1.22 million in 2018. The share of borrowed funds will slightly increase .