House prices across the UK are likely to rise by 2 per cent in 2020 and by 15 per cent over the next five years, Knight Frank has forecast.

The estate agency’s five-year prediction mirrors that of Savills, which also forecast an increase of 15 per cent by the end of 2024.

Knight Frank anticipates London will see zero growth in 2020, but prices are likely to rise by 13 per cent over five years.

The highest five-year growth is expected in the East and South East of England where Knight Frank predicts prices will rise by 17 per cent.

The North East is expected to see the lowest growth of 11 per cent by the end of 2024.

In the short-term, the estate agency believes the certainty delivered by the election result will see the release of pent-up demand in the property market.

The extent to which this boosts transaction volumes will depend on the pricing expectations of buyers and sellers.

Knight Frank believes interest rates will begin “a gradual process of normalisation in 2020”, which could see the end of ultra-low mortgage rates and a squeeze on affordability.

However, it believes rates will remain low compared by historical standards over the next five years, with economists expecting interest rates of below 2 per cent by 2023.

Knight Frank predicts rents will rise by just 1 per cent in 2020 and by 10 per cent over the next five years.

Head of London residential research Tom Bill says: “Slightly stronger growth is expected in the South East and East of England supported by a more positive outlook for economic and employment growth over the next five years. 

“Once the Brexit deal is completed, we forecast rising momentum across all markets, with price growth reflecting this from 2021 onwards.

“In prime London markets, the erosion of the currency discount as well as the possibility of stamp duty changes for non-residents will weigh on demand in the short-term. 

“After that we expect stronger growth to return before a dip in 2024, the date of the next scheduled General Election.”