House price rises predicted to halve

HOUSE price growth will be cut in half by rising interest rates and concerns about Brexit over the next five years, an estate agency predicts.

Savills reckons prices will grow by 14 pc by 2022 — half the 28 pc for the past five years — and that mortgage rates will double to 4 pc as the Bank of England increases interest rates.

Uncertainty over the terms of Britain’s exit from the EU and how the economy will fare will cause homeowners to put off selling their homes, it says. These factors will act as a ‘drag’ on the housing market, according to Lucian Cook, director of residential research at Savills.