22 Aug CEBR states that houses prices will rise.
A Reason To Get Off The Fence! Peter Gordon of A.J. Buckley reports…I am certain that many potential buyers will decide to rent rather than buy property on the premiss that house prices are unlikely to increase in the near future. However, The Centre for Economics and Business Research have stated that house prices will increase by 14% over the next four years albeit down from 16% last May.
It predicts a fall of 1,3% in 2011, but then gradually rise between 2012 and 2015 as follows.
2012 by 2.4%
2013 by 3.4%
2014 by 3.6%
2015 by 4.0%
Their predictions are based on the ongoing shortage of housing, a gradual increase in the availability of mortgage finance and a prolonged period of loose monetary policy.
Cebr says house building will remain depressed for the next four years and this, combined with population growth, will result in an increasing shortage of accommodation. They state further that Bank Rate is unlikely to rise above 2% before 2015.
Douglas McWilliams, chief executive of Cebr, says “We do not expect a house price boom, but the housing shortage is likely to push prices gently upwards” Perhaps this is a reason for buyers to act now rather than later?
James Wyatt of Estate Agents Barton Wyatt in Virginia Water commented “I fully concur with Peter Gordons report – we have already seen prime property prices harden, much in line with what the central London market is experiencing. This has been fuelled by immense currency inflows from overseas and a shortage of exceptional properties. The only way is up!”.