Prices could rise by 35% by 2020

RICS predict further growth As we all know house prices are on the up but recent data released by the Royal Institute of Chartered Surveyors show that prices could rise have risen by as much as 35% by 2020.

Based on recent figures some would argue that these figures are a little on the light side particularly as London as posted an 18% increase in prices in just 12 months. Many would argue that house prices in the south-east double every 10 years and that they will have increased by more that 35% by 2020.

Predicted growth of 6% per annum

The figures are based on the national average price increase of 6% per annum. It can’t be confidently predicted that prices will not increase faster in the south-east because as we have already seen most predictions are wrong and are often affected by things that are off the radar.

For example will pensioners start piling into the property market with the new pension reforms. Nobody saw that coming and it is possible that further pressure will be added to house prices with an annual supply of new pensioners looking to get into the buy to let market.