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House Prices 'To Rise By 25% In Five Years'

October 10th 2013
By: Melanie

At the end of September  a report published by the Centre for Economics and Business Research upwardly revised its forecasts to show that a typical house in the UK is expected to jump by a quarter in five years to reach a record figure of nearly £280,000. In London prices will rise even higher, from £395,000 today to £566,000 in 2018.

Many fear that Help to Buy is helping to drive this trend but despite these concerns in some quarters, the housing market is CEBR say, being driven largely by fundamentals – demographics and the economy – not speculation. Talk of a housing bubble they say is premature. A slowly recovering economy, the domestic population’s need for homes, slow supply growth and improving credit availability are all  the things that are supporting house prices.

Daniel Solomon, CEBR Economist and main author of the report, said: ‘Government support and an improving economic climate will provide an invigorating shot in the arm for the housing market over the coming years.’

‘This is not a case of houses being built on the sand. The housing market recovery we are seeing rests on firm economic and demographic foundations – at least for now. Talk of a house price bubble is premature.’

 There are also some indicators that the recovery is wide spread. ‘Northern Irish house prices have recently posted their first annual gain in years and the housing market recovery is finally moving beyond London and the South East. This should make home owners up and down the country feel that bit wealthier, supporting consumer confidence.’

If you would like any more property information, then why not pop into your local branch of Intercounty and our team will be happy to answer any questions you may have.