HOUSE PRICES in the south east are expected to rise by nearly £20,000 before the end of the year, despite the cost of living crisis.
Market analysis from London lettings and estate agent, Benham and Reeves, shows that across the country, there could be a 5% increase on average.
Although rising interest rates and energy bills are, according to many experts, expected to dampen the housing market boom by reducing buyer demand, the research suggests that the market will add, on average, a further £14,320 to the average property value bringing it up to £300,717.
London will see the largest increase – £26,896 will bring the year-end average to £564,816 having started the year at £518,028.
Benham and Reeves’ research suggests the South East will finish the year with the biggest increase – a £19,526 boost bringing the average price to £410,039.
The lowest increases would be in the North East (£7,896), Northern Ireland (£8,453), and Scotland (£9,612).
Director of Benham and Reeves, Marc von Grundherr, said: “We keep waiting for house prices to plateau, but it’s just not happening.
“The pandemic-inspired boom in demand and value has supercharged the housing market to such an extent that it seems even a cost of living crisis and soaring interest rates can’t stop it in its tracks.”
He said that it was because of this that he expected the increases.
“As for if and when prices will finally fall – it’s hard to predict,” he continued.
“But if this coming winter is going to be as tough as most are suggesting it will be, we might find that moving home is pushed to the very bottom of most people’s to-do lists and property values might, therefore, start to decline.”
