Talking to Reuters, FPD Savill's head of residential property research, Richard Donnell, said the potential increase is because of a lack of supply to meet the growing demand helped along by low interest rates. "The amount of houses being built won't increase in the short term and that means more (upwards) pressure on house prices," he said.
The predictions come at a time when many are warning of a slowdown in the housing market, particularly in London. However, Donnell believes that future lack of supply is more acute in London and that the market will be “strong overall”.
