House prices across the UK are expected to increase by 4% this year, according to a property group's forecast.
Savills, which previously warned of zero house price growth in 2021, today released "upgraded forecasts" suggesting values could climb by 4%.
It said the average property price is now set to increase by £10,000 over the next 12 months.
By the end of 2025, Savills said it expects house prices to have increased by just over a fifth, with the North West of England and Yorkshire and the Humber leading the way with 28% growth.
Based on figures from Nationwide Building Society's house price index, Savills calculated that the forecasts could add £48,724 to the average UK house price between December 2020 and the end of 2025.
It said housing markets further away from London, where house prices tend to be lower compared with incomes, have more potential for prices to grow.
Savills' expectations are based on the "second hand" house price market, not new-build properties.
Coronavirus vaccines and continued Government support are behind the more bullish predictions.
Lucian Cook, Savills head of residential research, said: "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.
"Real-time data from TwentyCi tell us that new sales agreed remain well above the pre-pandemic norm, with the same true of mortgage approvals.
"That points to a strong first half which, together with the introduction of the mortgage guarantee scheme, underpins our expectation of 1.4 million transactions in 2021."
Cook said that, by extending the stamp duty holiday and the furlough scheme in last week's Budget, "the Chancellor has significantly reduced the downside risks in the mid-year, while a recovering economy should support price growth towards the year end".
How much will house prices rise in your area?
Here are Savills' predictions for house price growth between December 2020 and the end of 2025.
It said on average, properties in the UK are expected to rise 21.1%, from £230,920 to £279,644 for a typical home.
-
North West, 28.8%, £176,925, £227,879
-
Yorkshire and the Humber, 28.2%, £172,326, £220,921
-
East Midlands, 24.0%, £200,951, £249,180
-
West Midlands, 24.0%, £207,603, £257,428
-
Scotland, 22.8%, £156,768, £192,512
-
Wales, 22.8%, £169,846, £208,571
-
North East, 20.5%, £137,531, £165,725
-
South West, 18.7%, £264,512, £313,975
-
South East, 17.0%, £336,984, £394,271
-
East of England, 17.0%, £310,240, £362,981
-
London, 12.6%, £486,562, £547,868
