House price growth in the south east of England is set to surpass London over the next four years, with the average house to cost £373,773 by 2020, according to research published by BNP Paribas Real Estate.
House prices in the south east are predicted to rise by 27.6% by 2019, second only to the South West, at 33%, and outstripping London’s forecast of 16.1%, as the new homes market continues to be driven by family housing on the commuter belt.
The South East will see an initial drop in house price growth from 9.06% in 2015 to 6.16% in 2016, and will then steady out, remaining between 6 and 6.5% over the next four years.
Some of the region’s strongest growth is being seen in South Kent, where the delayed impact of the high speed train link, built in 2009, is reflected in increased appetite from national house builders in towns like Folkestone and Ramsgate.
Julian Gaynor, Director for the South East at BNP Paribas Real Estate said: “The land market in the South East, although buoyant, has thinned as the impact of the past 10 years of house builder mergers and acquisitions and increased land availability is felt.”
Average UK house prices will rise 4.7% to £206,314 in 2016, pushing the cost of the average home above £200,000 for the first time. By the end of 2019, average prices will rise by 20.1% to £236,691.
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