By contrast, house prices in Northern Ireland and the North East are forecast to grow by only 6pc and 2.3pc over the same period.
Daniel Solomon, CEBR economist and main author of the report, said: "Before the decade is out, we predict the price of the average home in London will reach £500,000."
"House price rises will be driven by London's comparatively rosy economic growth prospects, buoyed by IT, business and professional services," he added.
"Nevertheless, house price growth in London will remain notably slower than in the boom years before the financial crisis."
While the forecast of accelerating prices in the capital could bring cheer to homeowners in London, it could spell further trouble for first-time buyers already struggling to get on the ladder in the capital.
Figures show that twice as many Londoners between 25 and 34 rent rather than own a home.
The Government has, however, taken steps to try to help first-time buyers get on the ladder, through schemes such as Frist Buy and New Buy.
Under these schemes, 90-95pc mortgages are available on new homes built by participating developers.
No comments:
Post a Comment