UK house price growth has been slowing since the summer of 2014, but forecasts predict a positive outlook for the next few years. According to real estate firm Knight Frank, price growth across the nation is expected to be 1% in 2018, reaching 14.2% cumulatively between 2018 and 2022. However, prices in London are forecast to fall by 0.5% in 2018. It is widely thought that cumulative growth over the next five years will be positive in the capital though – sitting at 13.1%.
A continuing trend is slightly stronger growth in the Midlands, the East of England and the North West.
A breakdown of the forecast figures show that for the UK as a whole, prices are expected to show growth of 1% in 2018, 2% in 2019, 3% in 2020, 3.5% in 2021, and 4% in 2022, a cumulative 14.2%.
Rents are also forecast to see strong growth over the same timescale. Nationwide Knight Frank is forecast a rise in rents of 2.5% in 2018, 2019 and 2020, then a 3% rise in 2021 and 2022, a total rise of 14%.