House prices in the West Midlands are set to rise by 4.5% by the end of 2021, and 5.5% in 2022, according to Index West Midlands.
Published in Savills’ latest growth report, the figures place the West Midlands third of all UK counties for predicted property value growth, behind Cheshire and the North West in first place, and North Yorkshire in second.
Figures for the whole of the UK indicate the growth expectation is already under way.
According to the latest Halifax house price index, the UK’s house prices have already reached a ‘record high’ with an historic average of £252,765.
This is in line with ONS figures, which recorded house price growth of 8.5%, which has added an average £20,000 to market values to record a £252,000 record high in 2020.
Kate Bould, managing director of Index West Midlands, said: “The residential property market must be prepared for a frenzy of house purchases and sales over the summer months as people realise prices are going to keep rising, to as much as £10,000 more by the end of 2021 compared to today’s prices.
“Demand continues to outstrip supply, especially in the sub-£500,000 price range that qualify for the SDLT holiday extension announced in the March Budget.
“Whilst the predictions for sustained growth in residential property values across the UK and the West Midlands specifically are good news for professionals in the sector, I am genuinely concerned that house buyers will feel under pressure to buy something, and make a hasty rather than considered decision over whether a new house is the right one in the right location for them.”
“Projects such as HS2 represent a potentially huge concern, particularly here in the West Midlands.
“Buyers desperate to move or get on the property ladder must be told about the importance of protecting themselves with such a huge investment, and that they can utilise a comprehensive portfolio of land and transport searches and specialist insurance to do so.
“The sector has a duty and responsibility to educate and inform homebuyers of the simple steps and options they have available that will really minimise the risks, protect them from negative financial consequences, to fully support them with their new home purchase.”