BRITAIN IS ONVERGE OF HOUSE PRICE BOOM

'Steady cuts to the base rate will help open up greater capacity for growth'

- Giles Sheldrick

BRITAIN is on the verge of a house-price boom with experts predicting values will soar 20% in the next four years.

In further evidence of economic gloom lifting, analysts think average homes could cost £346,000 by 2028.

The recovering economy and falling mortgage rates will be key factors in a buoyant market, ending fears of a housing crash.

This upbeat assessment is a boost after years of mortgage misery and cost-of-living woes.

Lucian Cook, of Savills which did the study, said: "The outlook for 2024 has improved since our last forecasts as mortgage costs have nudged down slightly and are much less volatile.

"The outlook for economic growth has slightly improved, pointing to modest house price growth this year, with greater potential in the following years." The upward revision by the London Stock Exchange-listed real estate company is proof the tide is turning after a difficult few years. Savills said property values are expected to have risen by an average of 21.6% by the end of 2028, up from a previous forecast of 17.9%.

It means a typical property will be worth an extra £61,500 from the £285,000 in 2023. The London property firm now expects house prices to grow by 2.5% this year, rubbishing the widely predicted 3% drop forecast in early November.