North West housing prices expected to rise by 4% this year

Savills calculated that nearly £50,000 will be added to the average UK house price between December 2020 and the end of 2025.

House prices across the UK are expected to increase by 4% this year - with the North West leading the charge.

Savills has released its upgraded forecasts, based on Nationwide Building Society's house price index, for 2021.

It calculated nearly £50,000 will be added to the average UK house price between December 2020 and the end of 2025.

The property group say by the end of 2025, house prices should have increased by 28.8% in the North West of England.

Chancellor Rishi Sunak's budget pledged more support for the housing market.

They say housing markets further away from London, where house prices tend to be lower, have more potential for prices to grow.

Savills' expectations are based on the "second hand" house price market, not new-build properties and come after there has been growing support from the government in order to bolster the housing market.

Lucian Cook, from Savills said: "With the introduction of the mortgage guarantee scheme, [it] underpins our expectation of 1.4 million transactions in 2021."

In the last year the government has taken action to stabilise the property marking, from the extending the stamp duty holiday to the 95% Mortgage Guarantee in this year's budget.