SURREY PROPERTY UPDATE
Surrey house prices expected to rise by 10.4 per cent in next five years Savills reveals latest research Mainstream house prices throughout Surrey and the South East are expected to grow by 10.4 per cent over the next five years – with an increase of three per cent in 2022, according to latest research. New figures from estate agents Savills show the average cost of a home in the region is predicted to rise to £485,553 by 2026 compared to the current average of £439,813. The increase is slightly less than that forecast for the UK as a whole, with prices expected to rise by 13.1 per cent over the next five years and by 3.5 per cent in 2022. It means the average cost of a home in the UK would increase from an average of £327,838 to £370,785 by 2026. At the higher end of the market – broadly the top five to 10 per cent by value – prices in the region are predicted to grow by 19.3 per cent over the next five years and by four per cent in 2022. Steven Stokes, who leads the residential sales team at Savills in Reigate, said while there was likely to be a less frenetic market next year, demand for property in popular towns and villages looked set to continue. He states: “After such intensity in the market and without the imperative of a stamp duty holiday, we know it’s likely to be less frenetic from 2022,” he said. “As a result, coupled with the first anticipated interest rate rise, our researchers expect price growth in the near term to be somewhat more muted than we have seen of late. However, the number of homes coming to the market has also been constrained and this – combined with relatively low unemployment rates and a robust economic performance coming out of a recession – means we simply expect to see softer growth rather than prices falling. It’s also worth bearing in mind that Surrey has experienced above average increases in house price growth for the past decade or more – so it’s perhaps no surprise to see other parts of the UK now catching up. That said, the regional increases we are predicting remain greater than those forecast for properties in London, while we still expect changes in working patterns to underpin demand in more rural areas,
Applecroft, in Buckland (guide price £800,000)
Leyfields, in Chipstead (guide price £1,800,000)
albeit to a lesser degree than over the past 18 months.” Commenting on the Surrey property market in the New Year he states: “With its connectivity to London, excellent schooling, variety of high quality housing stock and access to lots of green space and open countryside, Surrey has always been – and will continue to be – a popular choice for a wide number of buyers. A shortage of available properties on the market also means that homes in the most popular towns and villages will continue to be in high demand. There will always be areas that buck the trend and perform better than the wider forecasts. However, setting a realistic asking price from the start will be key to maintaining momentum as we move into the New Year.”
www.savills.co.uk
EDUCATION CHOICES MAGAZINE | WI NT ER 2021 | 49
