Annual house price growth set to slow to 3% in the UK in 2018 and fall 2% in London
July 16, 2018 / PwC
The average price of a house in the UK is estimated to rise from £221,000 in 2017 to around £285,000 by 2025, according to a new analysis. But house prices in London are projected to fall in the short term, down by 2% in 2018 from 2017, the report from PwC suggests.It also says that only around 11% of UK households would be immediately affected if mortgage interest rates rose, compared to around 24% in 2012 and most buyers are opting for fixed-rate deals which accounted for 94% of new mortgages in 2017 compared to only around 50% in 2010 Overall annual UK house price growth is projected to slow to around 3% in 2018 and is likely to remain around this level until 2025. The report says that price growth at this pace means the ratio of house prices to earnings is likely to remain broadly stable, but still at high levels by historical standards.