An assessment by Savills suggests capital values – including those for properties in the lettings sector – are likely to soar in the next five years.

Savills had previously anticipated zero house price growth in 2021, but a surge expected as a result of the extended stamp duty holiday and the longer furlough scheme has led to the agency reassessing its prediction over the longer term too. 

By the end of 2025, Savills expects UK typical house prices to have increased by 21 per cent, with the North West of England and Yorkshire and Humberside strongest of all on 29 and 28 per cent respectively. 

Using Nationwide building society data, Savills calculates the typical UK home could be worth £48,700 more by the end of 2025. 

Lucian Cook, Savills’ head of residential research, says: “The outlook has improved since the beginning of the year given the speed of the vaccination programme, the expected relaxation of social distancing measures and government support for both jobs and the housing market.”

London capital values are expected to be big winners in the capital appreciation stakes.

Prices in London’s mainstream market are expected to rise 12.6 per cent in the next five years, with prime areas – currently down 21 per cent from their 2014 peak – set to surge. 

Prime central London prices will rise three per cent this year, seven per cent next year and total 21.6 per cent by 2025.