West Midlands house price growth to race ahead of London
House prices in the West Midlands are set to outperform London over the next four years, according to new research.
Demand for homes across the region is set to race ahead of the national rate as well, rising 31.2 per cent to hit an average of £222,631 by 2020.
According to global property adviser BNP Paribas Real Estate, prices will be driven by continuing economic growth in the area and the investment in HS2. The growth in the West Midlands compares with estimated house price rises of 25.1 per cent in London to £560,251 over the same period.
Nationally, house prices will increase on average by almost 27 per cent to over £250,000 by the end of the decade as economic growth continues.
David Couch, director at BNP Paribas Real Estate said: "Investment in HS2 and the creation of the 'Midlands Engine' are fuelling investment interest in the region, and we are seeing price growth underpinning developer confidence in good sites near major conurbations."
Adrian Owen, head of residential at BNP Paribas Real Estate, added: "Improving household finances will inevitably create excessive pressure on the market over the next 12 months. We expect prices to have risen by 4.5 per cent in 2015 and to rise by 4.4 per cent in 2016.
"Over the next four years we expect the average house price to grow by close to seven per cent per annum, reflecting a period of 'catch-up' as real prices return to their long term trend.
"The disparity in prices across the regions of the UK continues to grow, with the North East, Scotland, Wales and Northern Ireland showing less ongoing demand. However, we expect the Midlands and the non-London south to play a degree of catch-up with London where, following its outperformance for so many years, prices are forecast to grow slightly below the national average."
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