Knight Frank has revised its UK house price forecasts as inflation is falling faster than expected, with the company now suggesting that house prices will rise by 3% in 2024.
This compares to a decline of 4% which was predicted in October.
Knight Frank also expects cumulative growth of 20.5% in the five years to 2028.
This is partially a result of stronger demand, as the number of mortgage approvals was 10% higher in November than the previous year and the firms expects a double-digit percentage increase in sales volumes this year compared to 2023.
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The report forecasts slightly lower growth for the mainstream London market (+2%) this year as continued affordability constraints in the capital mean lower-value areas of the country are likely to outperform.
Read about the UK Housing Market via our Specialist Residential & Buy to Let Division
In the prime country house market, Knight Frank expects a narrower decline this year (-2%) as the market comes down from the highs of the pandemic in recent years.
By Jodie Bradley
Source: Bridging & Commercial