The outlook for UK house prices is quite optimistic and seems to be on a constant track upwards, according to the latest data. Thus far, the biggest reason for the outlook is the fact that there are still shortages in every region of available homes for sale. The Centre for Economics and Business Research has now revised the prediction twice this year for house price growth in the future.

Nina Skero, economist and author of the report, commented on the factors leading to the ambitious outlook, saying: “A reduction in the number of properties being put on the market has placed further upward pressure on house prices in some parts of the UK.

“This is a result of low levels of housebuilding but also other factors such as an ageing population and the rising cost of moving up the property ladder.”

A record high price of £263,000 is expected for the average house in the UK this year alone. This is in line with the estimated 5% growth of all house prices.

This price is no match however for what is expected in the short term of five years. By the year 2020, the average UK property will be listed for sale at a price of £321,600.

Skero continued, saying: “The price gap between a first-time home and a larger family home has skyrocketed in some regions, such as London, curbing activity in the housing market.

“For many, the rungs of the property ladder are moving further apart, making it impossible to upsize.”

The pace of remortgage activity continues to increase as the probable increase in interest rates draws closer. Deals are in short supply throughout the market, but are not out of the question. Remortgages have the ability to decrease a monthly house payment by many pounds simply by obtaining a lower, fixed interest rate.