House prices across England and Wales are set to increase by 30 per cent during the next five years, according to a new report from Oxford Economics.
The economic forecaster suggested that the south will be the biggest beneficiary and added that a north/south divide would be enhanced in the years until 2019.
London prices are forecast to rise by nearly 33 per cent, while the south-east could increase by 37 per cent, although sustained growth is expected across the country.
The north-west will be the slowest riser, but prices in the region are still expected to climb by 24 per cent.
This represents great news for property investors across the country, as buy to let properties could see significant capital appreciation during the next five years.
Property and economic data that used both asking and sold prices for the calculations formed the study, as well as surveyor valuations and analytics from forecasting models.
Areas within commuting distance to London performed particularly well, with Southampton set for a 43 per cent rise and Luton and Brighton both set for a 41 per cent boost by 2019.
The home counties and outer boroughs of the capital are set to notice a ripple effect of approximately one year of rising prices in London.
However, prices in the capital are expected to rise at a slower rate than the south-east and East Anglia – two areas where investment is expected to produce significant returns.
Within the capital, west London is expected to notice a prime property slowdown with an increase of 14 per cent predicted.
This means its growth potential is similar to northern cities such as Manchester and Carlisle, where growth of 17 per cent and 19 per cent respectively is expected.
The study discovered that the exchange rate would have more of an impact on prime location properties in the capital than on wider suburban markets, where population and employment were key influences on prices.
Please see another more recent article from Jeni about Property Price Predictions.