The average house price in the UK is set to increase by over 20% to £236,691 by the end of 2019, according to a forecast from BNP Paribas Real Estate.
The global property adviser calculates that by the end of this year, the average house price in the UK will have increased by 4.7% to £206,314.
The forecast suggests that the strongest growth in the next four years will occur in the service sector-dominated economies of the south of England.
BNP Paribas predicts that prices in the South West will have risen by 33% by the end of the decade and that during the same period average prices in the South East will increase by over 27%.
The report indicates that the weakest growth over the next four years will be in the North at 8.1%, bringing the average house price in this region up to £134,249.
The average London home is forecast to see growth of 16.1% from now until 2019, with the average cost of a home rising to £529,660.
“Regions with a greater economic contribution from the service sector will see stronger price growth, particularly where there is still a degree of catch-up following the financial crisis,” says Adrian Owen, head of residential at BNP Paribas.
“In contrast London will, on average, see relatively weak, below-trend growth over the next four years,” he says.