UK House Prices expected to rocket by up to 30% over the next five years

While news last week was that the UK saw the lowest monthly increase on house prices, a study by RightMove has revealed that over the next five years house prices could rise by as much as 30%, with some areas seeing rises of nearly 45% by 2019.

Normally London is at the centre of such stories, however it’s the areas such as Luton, Southampton and Brighton – all of which well within the commuter belt - which are expected to see house prices increase by over 40%.

In fact, house prices in London are predicted to experience a much more reasonable rate of growth of between 10% and 14%, a trend which is being seen in other major cities, such as Manchester.

For expats, the news is coupled with the impending change to Capital Gains Tax rules which come into play in April next year which will see UK property become subject to Capital Gains Tax for the first time.

This combination is already causing concern for expats considering selling their property to avoid expensive tax bills from next year, and hundreds are seeking advice each month to understand the bigger picture, including how the tax Capital Gains Tax changes could impact them.

And with interest rates expected to rise in the next few months, any outstanding UK mortgage payments could also come into the decision of whether to sell property or stick and take advantage of the continuing trend in rising house prices.