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Property Prices Due To Increase By 20% By 2020

October 30th 2015
By: Melanie

It doesn’t look as though there is going to be a slow down in property prices any time soon, this has been backed up by new research by the Centre for Economics and Business Research (Cebr) who has stated that they expect prices to rise by 3.5% in 2016 with a further annual increases of around 4% in the years that follow.

They forecast that 2015 annual price growth predictions were too modest and these have been revised from 4.7% in June to 5.6% this month, which means that the average price of a UK property is set to stand at a record high of £263,000 this year.

Their research has also revealed that the price gap between a terraced house and a purpose built flat in London nearly quadrupled from £46,000 in 2000 to £176,000 in 2014.

It cites the lack of property available in the market place as being one of the main reasons behind the upward revision to the forecast. At the same time, a slowing down in the economy has been blamed on the lack of new housing being built in the UK, which begs the question when is something positive going to be done about making sure that on a local council level brown fill sites are released for building new houses?

Despite the lack of housing overall this new report states that home ownership has risen among older households since 1981, but has collapsed among younger households.

Nina Skero, Cebr economist and main contributor to the report stated: ‘A reduction in the number of properties being put on the market has placed further upward pressure on house prices in some parts of the UK. This is a result of low levels of houses being building, but also other factors such as an ageing population and the rising cost of moving up the property ladder.’
 
‘The price gap between a first time home and a larger family home has skyrocketed in some regions, such as London, curbing activity in the housing market. For many, the rungs of the property ladder are moving further apart, making it impossible to upsize,’ she added.

Source: Property Wire