Forecast of 7pc growth in prices
THE transformation of the housing market in 2013 has been notable, according to Knight Frank researchers.
Strong price growth might not be justified by market fundamentals, but government support and rising confidence have boosted short-term price movements, the property firm said.
Global head of residential research Liam Bailey said: “Property price growth in 2014 and 2015 will be substantially higher than inflation. Average UK house prices will rise by seven per cent in 2014 and we will see cumulative growth in UK prices of 24 per cent to the end of 2018.
“Property prices in prime central London will rise by four per cent in 2014, with cumulative growth of 20 per cent by end of 2018.”