Reallymoving has predicted annual house price growth to reach 14% by November 2020.
The quote service said the prediction is based on deals already agreed, as pent up demand and urgency to benefit from the temporary stamp duty holiday has driven up activity in the market.
Annual price growth is forecast to reach 4.7% in September, 11.4% in October, and finally 14% in November.
Rob Houghton, chief executive of reallymoving, said: “Buyers are determined to make their move now, despite the fact that the current spike in prices will in many cases wipe out the stamp duty savings.
“For those higher up the ladder with secure finances, a healthy level of equity in their property and little other debt, gloomy economic forecasts are only encouraging them to press ahead with the move rather than sit tight and wait out what could be a long and painful recession.
“More than ever people’s homes are their castles and their offices – and with borrowing costs likely to be rock bottom for the foreseeable future, paying over the odds on a purchase isn’t too painful if you’re also getting over the odds on your sale and making a stamp duty saving.
“It’s a different story for first-time buyers though, who aren’t benefitting from stamp duty savings in most areas and who have seen low deposit mortgages all but wiped out. This explains why the proportion of first-time buyers in the market has dropped by 19% since May.”
This post has originally been featured in Property Wire.