UK house prices have been forecast to grow at a cumulative 13.1% in the next five years, according to an outlook report by CBRE. The average price of a home is expected to rise from £316,500 this year to £428,100 in 2021, while rents are predicted to increase by around 5% over that period. It also points out that house prices are approaching the limit that current incomes and credit conditions can support, and the ability for buyers to bid up prices is limited, but nevertheless will see steady growth of a cumulative 13.1% over the next five years. In addition, the report predicted a cumulative rise of 11.4% in rents in the coming five years. It said higher capital inflows to the private rental sector were expected in 2019. In the year to Q3 2018, £2.1bn of institutional capital had been invested, a 51% YoY increase, it found.
UK house prices have been forecast to grow at a cumulative 13.1% in the next five years, according to an outlook report by CBRE. The average price of a home is expected to rise from £316,500 this year to £428,100 in 2021, while rents are predicted to increase by around 5% over that period. In addition, the report predicted a cumulative rise of 11.4% in rents in the coming five years. It said higher capital inflows to the private rental sector were expected in 2019. In the year to Q3 2018, £2.1bn of institutional capital had been invested, a 51% YoY increase, it found.