House prices to rise 25%..

Sibley

As per article:

House Prices Will Soar by 25%

Research carried out for the National Housing Federation predicted that the house prices in England will rise by 25% during the coming five years.
"Our report shows that despite concerns about the current housing market downturn, house prices will increase substantially over the mid to long term" said NHF chief executive David Orr.

Homeowners are now getting an average of just 90.9% of their asking price - well down on levels of 95.1% 12 months ago.
East Anglia saw the biggest drop in prices during the month, with the average cost of a home falling by 1.4%, while slides of 1.3% were recorded in Greater London, the South East, South West and East Midlands.
Despite the gloomy figures, National Housing Federation (NHF) research claimed the current market downturn would be over by 2010, leading to a return of rising prices.
It predicts the average home in England will cost £274,700 by 2013, with prices rising by 5.2% during 2011 and by more than 9% a year in both 2012 and 2013.
In the short-term, it expects prices to fall by a further 2.1% in 2009, before beginning to increase in 2010, edging ahead by 1.3%.
The research, by Oxford Economics, showed despite the current crisis, demand for property is still growing, while the supply of new housing is falling.

Bangerchick

I can see that our booming economy and increasing amount of disposable income that most people have at the moment wil support this astronomic rise. Er.......

the.ciscokid

I bet this is a Daily Express article.

macaque_2

Sibley wrote: »

As per article:

House Prices Will Soar by 25%

Research carried out for the National Housing Federation predicted that the house prices in England will rise by 25% during the coming five years.
"Our report shows that despite concerns about the current housing market downturn, house prices will increase substantially over the mid to long term" said NHF chief executive David Orr.

Homeowners are now getting an average of just 90.9% of their asking price - well down on levels of 95.1% 12 months ago.
East Anglia saw the biggest drop in prices during the month, with the average cost of a home falling by 1.4%, while slides of 1.3% were recorded in Greater London, the South East, South West and East Midlands.
Despite the gloomy figures, National Housing Federation (NHF) research claimed the current market downturn would be over by 2010, leading to a return of rising prices.
It predicts the average home in England will cost £274,700 by 2013, with prices rising by 5.2% during 2011 and by more than 9% a year in both 2012 and 2013.
In the short-term, it expects prices to fall by a further 2.1% in 2009, before beginning to increase in 2010, edging ahead by 1.3%.
The research, by Oxford Economics, showed despite the current crisis, demand for property is still growing, while the supply of new housing is falling.

The article also said:

forecasts that house prices will fall in 2009, start to recover in 2010, and then rapidly increase from 2011...

Sibley

I bet this is a Daily Express article.

No it is actually on the NHF website.

Even the house price crash team have copied and pasted it on their site. I bet they must be smashed on the rocks this weekend. Like little boats at the bottom of a lighthouse.:rotfl:

I think it's quite obvious a lot of our so called 'bears' on here are not really just bothered about house prices. Are you telling me their state of mind will improve if prices dropped a bit?

No way. They want everyone in same situation as they are.

HAMISH_MCTAVISH

Old article, but not that far off the Mark.

2010 closed around 2% up on LR. 2011 will be more muted than they expect but 2012 and 2013 will see big gains as the demographics kick in.

Mortgage rationing and all the rest of the artificial restraints are just delaying the inevitable next boom by a few years. Kicking the can down the road.

smeagold

So the bulls are reduced to digging up 3 year old articles now to prop up their failing fantasies? Surging demand in 2011 you say? Anyone seeing surging demand anywhere? people can demand all they want but if they can't raise a deposit or secure a mortgage I'm afraid the housing market will be forced to go lower to a point where people can buy. Unless of course the ageing babyboomers and the rapidly shrinking/increasingly poor middle class are going to shuffle the entire UKs housing stock around amongst each other, at inflated prices in perpetuity (at the expense of the younger generation) But thats not going to happen so you can kiss your demand thesis goodbye.

gagahouse

Don't take the troll's bait, it's pathetically transparent.

Sibley

Don't take the troll's bait, it's pathetically transparent.

I am sorry. This board is about debating house prices. I've read my original post and fail to see how you can say that.

Are you another renter with a chip on your shoulder?

globalds

So house prices will keep up with inflation.

smeagold

HAMISH_MCTAVISH wrote: »

Old article, but not that far off the Mark.

2010 closed around 2% up on LR. 2011 will be more muted than they expect but 2012 and 2013 will see big gains as the demographics kick in.

Mortgage rationing and all the rest of the artificial restraints are just delaying the inevitable next boom by a few years. Kicking the can down the road.

You really are in fantasy land. so 0.5% IR is a restraint? Why are mortgages being rationed? for several reasons, The banks belive that house prices will fall further so they want a bigger deposit from the buyer to insulate themselves from the future losses. Mortgages are being rationed also because the vast majority of the uk population is in debt and their earnings are not enough to fully cover future mortgage payments, they're a credit risk to the bank. with increasing inflation/ austerity, buyers ability to service future mortgage costs is falling, not rising, if it were rising deposits would be falling and mortgage lending would increase. Its not.

The only way this will be reversed is if everyone suddenly gets wealthier and out of debt or if prices fall to a level where there is no longer a risk of further losses, for banks assets to be impaired.

Folks can demand all they want but if they can't afford it they will have to wait for it to drop to a level they can afford or else dramatically increase wages/reduce debt.