New figures from Canada Life Home Finance reveal that a significant number of independent financial advisers think that UK house prices will rise in 2019.
Based on research by Canada Life, the figures show that more than three-quarters (77%) of advisers expect house prices to increase. Despite data showing that house prices continue to stagnate or fall across much of the UK, 59% of advisers expect house prices to rise by at least 5% in the coming year. If house prices were to rise by 5% in 2019, Canada Life calculates that the total potential value to homeowners aged over 55 via equity release will be nearly £400 billion by the end of the year, up from approximately £380 billion at the end of 2018.
Alice Watson, head of marketing and communications at Canada Life Home Finance, said:
“The finding that a majority of advisers expect UK house prices to rise in 2019 might come as a bit of a surprise at first, but at a national level this expectation sits harmoniously alongside house price data. While the value of people’s homes might be stagnating in London and the south east, it is significant that regions like Yorkshire have seen strong annual growth year-on-year.”
The research also found that more than a third (36%) of advisers think that house prices will increase by 10% in 2019, while 18% expect house prices to rise less than 5%. Notably, almost half (49%) of male advisers expect house prices to increase by more than 10% in 2019. This compares to only 3% of female respondents who selected this option.
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