House prices are expected to rise by more than £60,000 over the next five years as Britain’s mortgage crunch eases, a leading estate agent has said. Savills significantly upgraded its five-year forecasts for the housing market, citing an “improved economic outlook”. The agency is now expecting house prices to grow by 2.5pc this year, compared to a prior forecast values would drop by 3pc across 2024. That prediction was made in November when Britain was in recession. The upgrade suggests the average UK house price, which stood at £285,000 at the end of 2023, will rise by £7,000 to £292,000 by the end of the year. Its five-year price growth forecast has been upgraded from 17.9pc to 21.6pc. By 2028, the average UK house price will be £346,500, Savills said, an increase of £61,500.Lucian Cook, head of residential research at Savills, said: “The outlook for 2024 has improved since our last forecasts as mortgage costs have nudged down slightly and are much less volatile.“The outlook for economic growth has also slightly improved, pointing to relatively modest house price growth this year, with greater potential over the following few years.”Savills is significantly more optimistic than most market analysts. The average forecaster...