House prices are set to soar over the next 5 years, with the average home rising from £222,000 to £267,000 according to a new report.
The forecast comes from the Centre of Economics and Business Research, who have said that it expects to see a boom of £25 per day or £750 a month increase in value. This news quickly followed Osborne’s budget, promising a £30 billion investment to get the housing market in the UK started again. Mortgage rates have dropped to an all time low, with some lenders offering as much as 1.7% mortgages.
The economist and report author Daniel Solomon stated: “By 2018, we expect the typical UK home will cost £267,000 – over 20% more than this year.
“Gradual wage and population increases will be the fundamental drivers of this medium-term trend.
“We expect the Chancellor’s new Help to Buy scheme will push up house prices before it raises housing supply.
“We predict the scheme’s effects will be quite modest, but it could support the construction of roughly 5,000 new homes in 2015. This supply boost could provide a welcome route on to the housing ladder for a small number of aspiring homeowners.”
If you would like to find out more about the new ‘Help to Buy’ scheme, and are looking to apply for a mortgage, then why not pop into your local branch of Intercounty, and we will be able to help you, by discussing the mortgage options available to you.