The survey of 100 advisers from equity release provider Canada Life Home Finance showed financial consultants expect property prices to rise an average of five per cent, in contrast with predictions from the Royal Institution of Chartered Surveyors and Rightmove of 0% growth nationally and a potential -2% fall in the South East.
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 five per cent in the coming year.
The Halifax index out this morning showed a surprise price spike in December of 2.2%, up from a fall of -1.2% the previous month.
If house prices were to rise by 5% in 2019, the provider calculates that the total potential value to homeowners aged over 55 via equity release will be nearly £400bn by the end of the year, up from approximately £380bn by 2018-end.
Alice Watson, Canada Life’s head of marketing and communications, 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.”
10% rises
Over a third of advisers think house prices will increase by 10% in 2019, while 18% expect house prices to rise less than 5%.
Notably, almost half 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.
Less than one in ten advisers think that house prices will stay the same.
Watson said: “One of the driving factors to advisers’ optimism might be an expectation that the Brexit uncertainty will soon come to pass. Of course, this remains to be seen. But even a little certainty will go a long way to helping businesses and people plan for the future.”
Canada Life acquired Retirement Advantage on 3 January 2018 for an undisclosed sum.
