THE average UK house price will leap by nearly £60,000 over the next five years hitting more than £320,000 in 2020, according to a new economic forecast.
In addition the rungs of the property ladder are moving further apart, according to the Centre for Economics and Business Research (Cebr), making it harder for people to trade up to a bigger home as the cost has "skyrocketed".
Cebr said that house prices in 2015 are set to be 5.6 per cent higher compared with average prices across 2014, and the average UK property value will stand at a record high of £263,000 this year.
This is generally in line with the forecasts made last month by the Royal Institution of Chartered Surveyors (Rics) that Sottish house prices are expected to rise by five per cent over the course of the year because supply was failing to meet a rising demand for homes.
Property across the UK Cebr predicts prices will continue their upward march in the years ahead, 3.5 per cent higher in 2016 than they were this year, with further annual increases of around 4 per cent in the four years that follow.
These increases will take the average price of a UK property to £321,600 during 2020 - £58,600 more than the average house price in 2015, according to Cebr.
It also says that the price gaps between different property types are widening. In London, someone who wants to move from a flat to a terraced home would now need to find an extra £176,000. This cost has nearly quadrupled compared with 2000, when the price of trading up between these property types was £46,000, according to Cebr.
Nina Skero, Cebr economist and main author of the report, said: "A reduction in the number of properties being put on the market has placed further upward pressure on house prices in some parts of the UK. This is a result of low levels of housebuilding, but also other factors such as an ageing population and the rising cost of moving up the property ladder.
"The price gap between a first-time home and a larger family home has skyrocketed in some regions, such as London, curbing activity in the housing market. For many, the rungs of the property ladder are moving further apart, making it impossible to upsize."
Meanwhile, a survey found that in Scotland there are increasing signs the market is adjusting to the country's new version of stamp duty.
The average value of property increased by 1.1 per cent in August, the second month of growth since Land and Buildings Transaction Tax (LBTT) was introduced in April, taking Scottish house prices back above December 2014 levels.
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