Transactions and prices to boom over next five years - forecast

Transactions and house price forecasts for the mainstream housing market are being revised upwards by Savills following the Budget.

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The new predictions follow an unexpectedly strong market in 2020, which Savills says was the first time in modern history that house prices rose in a recession.

After a 7.3 per cent mainstream housing market price rise in 2020, Savills now forecasts: a 4.0 per cent rise in 2021, followed bye 5.0 per cent in 2022, then 4.0 per cent again in 2023, then 3.5 per cent in 2024 and finally 3.0 per cent in 2025.

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That means the average price of a UK home, currently at £230,920, will soar to £279,644 after five years.

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So the five year forecast to 2025 sees mainstream house prices rising an average 21.1 per cent, at least partly thanks to the extended stamp duty holiday and the continuance of the furlough scheme.

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Transactions hit around 1.05m in 2020 and Savills forecasts substantial rises on that figure in the years to come. It predicts 1.4m in 2021, then 1.25m in 2022 and 1.2m for each of the following three years.

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