Knight Frank has issued housing market predictions for 2016 roughly in line with all those issued by rival high end agents Savills, Strutt & Parker and JLL.
It says cumulative growth in mainstream house prices across the UK will total 20.3 per cent in the five years to the end of 2020.
In the prime London and prime country markets higher transaction costs will continue to weigh on activity and price growth in 2016 as the market absorbs stamp duty - prime central London prices are forecast to rise by just two per cent next year and by 20.5 per cent cumulatively by 2020.
“The price differential between most prime markets and the capital is likely to underpin price growth in 2016. As the economy continues to recover and house prices outside of London show further growth, the trend for more London buyers to move will gain traction, boosting the ripple effect from the capital” says Liam Bailey, Knight Frank’s Global Head of Research.
He says the chief risk to the market is that interest rate rises, when they come, may be more rapid than expected.