Property price growth over the next two years is set to be substantially higher than inflation, starting with a 7% increase in 2014, according to new research from Knight Frank.
And over the five years to the end of 2018, UK prices are set to grow 24% in total.
But prices will rise at a slower pace in London, as the long-awaited "ripple effect" finally spreads across the country.
Knight Frank forecasts that property prices in prime central London will rise by just 4% in 2014, with cumulative growth of 20% by the end of 2018.
Strong house price growth might not be justified by market fundamentals, but government support and rising confidence have boosted short-term price movements, said Liam Bailey, global head of residential research. “Property price growth in 2014 and 2015 will be substantially higher than inflation.”
But as base rates start to rise, price growth will slow. Knight Frank said that over the long term, nominal and real price growth may remain positive, house prices are likely to rise more slowly than earnings for at least a few years after 2016.
The strong market recovery may actually limit price growth in the longer term, it said.
UK property pricing is high in historic terms, and while the government can encourage activity over the next two to three years, it cannot change fundamental market affordability.
Once low interest rates and government stimulus start to unwind, the pace of growth will slow.
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