The prediction comes from Knight Frank’s housing market monitor which has forecast that housing market growth in the UK will reach 6% by the end of the year.

Following next year’s lull in property price rises, Knight Frank predicts in the five years to the end of 2019 there will be cumulative growth of 18.2%, indicating 12% growth in real terms.

The monitor indicated prime central London property will not experience any price growth next year as the possibility of a mansion tax threatens to hit the pockets of the wealthy.

The report forecasts that growth in this market will be slower in the next five years than in the last five when prime central London aws used as a safe haven for investment during the financial crisis. Growth is expected to pick up the pace in 2016 reaching 4.5% with a steady rise towards 6% in 2019 as demand continues to exceed supply.

Price growth in prime outer London is forecast to perform better, in areas such as south west London, as UK and European buyers look for better value outside of central London. Due to the ‘dampening impact’ of the election and interest rate rises, growth for this market is predicted to be 3% rising to 5.5% in 2016 with steady growth of 5% in the subsequent three years.

Knight Frank’s expects the Bank of England Base Rate to rise to 1% by Q4 next year and 1.75% in Q4 2016.