good news on house prices 20% RISE IN HOUSE PRICES PREDICTED BY 2013
well here is some good news about house prices i have found for you!
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House prices to grow 20% in four years
By Chris Marshall | 00:05:00 | 01 February 2010
A massive shortfall in housing completions will push house prices 20% higher by the end of 2013, the Centre for Economics and Business Research (CEBR) predicts.
The think tank expects house prices to rise by over 6% this year. This marks a significant increase on its earlier forecast where it predicted that prices would grow between 2% and 4% over the year.
It attributes the increase to its earlier forecast to rising mortgage lending, a shortage of new properties on the market and unemployment not rising as fast as expected.
Continuing low interest rates also play a role in the CEBR’s prediction, as it expects the base rate to remain on hold at 0.5% until mid-to-late 2011.
While the group anticipates a 20% rise in prices by the end of 2013, it expects house price growth to falter during 2011 as public sector cutbacks and increases in unemployment take their toll.
Ben Read, managing economist at the think tank, said: ‘We envisage a tough 2011 with house prices levelling out as government action to cut the deficit puts the brakes on demand. However, supply side pressures will reassert themselves in the medium term due to the massive shortfall in housing completions seen over the past two years and likely continued weakness in new housebuilding in the years to come. This will lead to stronger growth in house prices over 2012 and 2013.’
The Nationwide, which on Friday reported a 1.2% increase in house prices for January, adds the risk of worsening affordability into the mix, suggesting that with pay inflation near zero or even negative, every additional increase in house prices limits the upside potential for the current recovery in house prices.
The average UK house price now stands at £163,481, according to Nationwide.
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-------------
House prices to grow 20% in four years
By Chris Marshall | 00:05:00 | 01 February 2010
A massive shortfall in housing completions will push house prices 20% higher by the end of 2013, the Centre for Economics and Business Research (CEBR) predicts.
The think tank expects house prices to rise by over 6% this year. This marks a significant increase on its earlier forecast where it predicted that prices would grow between 2% and 4% over the year.
It attributes the increase to its earlier forecast to rising mortgage lending, a shortage of new properties on the market and unemployment not rising as fast as expected.
Continuing low interest rates also play a role in the CEBR’s prediction, as it expects the base rate to remain on hold at 0.5% until mid-to-late 2011.
While the group anticipates a 20% rise in prices by the end of 2013, it expects house price growth to falter during 2011 as public sector cutbacks and increases in unemployment take their toll.
Ben Read, managing economist at the think tank, said: ‘We envisage a tough 2011 with house prices levelling out as government action to cut the deficit puts the brakes on demand. However, supply side pressures will reassert themselves in the medium term due to the massive shortfall in housing completions seen over the past two years and likely continued weakness in new housebuilding in the years to come. This will lead to stronger growth in house prices over 2012 and 2013.’
The Nationwide, which on Friday reported a 1.2% increase in house prices for January, adds the risk of worsening affordability into the mix, suggesting that with pay inflation near zero or even negative, every additional increase in house prices limits the upside potential for the current recovery in house prices.
The average UK house price now stands at £163,481, according to Nationwide.
from rights and wrongs website
rights and wrongs
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