9 July 2014 | By Devraj Ray
The average UK house price could rocket to £330,000 by 2020, according to PricewaterhouseCoopers.
Office for National Statistics figures show average prices in the UK reached £260,000 in April, up 9.2 per cent from £238,000 in April last year.
PwC says the rate of growth in the UK market will slow over the next three years, with the average price predicted to reach £276,000 by the end of 2015 and close to £330,000 by 2020.
While the report claims the national housing market is “not yet overheating”, it goes on to say evidence of a bubble is far stronger in London, where it predicts average house prices could rise from £485,000 to £545,000 by 2020.
PwC says fears around a bubble could “cause interest rates to rise sooner rather than later”. The report also says the impact of the Help to Buy mortgage guarantee scheme on house prices has not been significant.
The report concludes by calling for an increase in housing supply, which it says must be a priority to keep prices under control