House prices set for new property boom

The Centre for Economic and Business Research has published its latest forecast for the country’s housing sales market and predicts a 5% rise in residential property prices before the end of the year.


A combination of factors, low interest rates, cheap mortgages and a shortage of supply are set to fuel a “significant” new property boom with prices rising by almost 20% over the next 3 years.

Its predictions for 2010 are slightly more cautious than they were before, as the Centre had previously predicted a 6% increase in values. Its specialists altered their predictions due to the fact that the recent poor weather and concerns over rising taxation may have limited enthusiasm for the property market.

The Centre predicted a typical three-bedroom semi would rise from the predicted 2010 year-end price of £172,500 to £203,200 by the end of 2013 if the surge – from the beginning of this year – materialises.

Chief executive Douglas McWilliams said: “House prices will be notably higher in three years than they are today.”

Stuart Law, chief executive of Assetz, said: “These latest figures confirm that the UK housing market is well advanced on its path to recovery. Post-election we would expect to see house prices continue to firm up as a result of renewed consumer ­confidence in the market, with a Conservative majority encouraging the highest levels of growth.”


http://firsttimebuyersupermarket.co.uk/