A HOUSE price growth forecast has been revised upwards, based on an improved economic outlook.

Across Britain, property values are expected to have increased by just over a fifth (21.6 per cent) on average by the end of 2028, revised from a previous forecast of 17.9 per cent, Savills said.

The revised forecast could mean the average house price grows by £61,500, from £285,000 in 2023 to £346,500 by 2028.

The property firm expects house prices to grow by 2.5 per cent typically during 2024, rather than an expected three per cent drop which was predicted by the company in early November 2023.

Savills cautioned that the market remains sensitive to short-term fluctuations in the cost of debt and political uncertainty in the run-up to the general election.

Housing transactions are forecast by Savills to reach 1.05m in 2024, slightly up from the 1.01m it predicted towards the end of last year. It also predicted that a stronger economic performance in 2025 and 2026 will support buyer sentiment. PA

(c) 2024 City A.M., source Newspaper