House Price Rise by 16% forecast....CEBR

HAMISH_MCTAVISH

HOUSE prices are set to rise by £30,000 as the spiral of “boom and bust” ends and the market returns to growth from next year, leading experts claim today.

Economists predict the cost of the average home will gradually rise 16 per cent to take prices above 2007’s high.

And, in a further boost, mortgage lending will also double as Britain’s finances continue to improve over the next four years. Experts from the respected Centre for !Economics and Business Research think-tank predict a return to a sustainable housing market as the high street banks loosen the purse strings to help more people on to the housing ladder.

And while a shortage of lending will be allied to a further dip in house prices for the rest of this year, they say the market is now “close to the bottom” and will soon start rallying.

Douglas McWilliams, chief executive of the Centre for !Economics and Business Research, said: “The main factor driving house prices up is the shortage of available housing which has already pushed up rents. Housing completions fell to only 130,000 in 2010, well below the level required to keep pace with demographic change.

Douglas McWilliams, chief executive of the Centre for !Economics and Business Research

“But the factors that will !ultimately drive house prices up again are the looser monetary !policy that will accompany the Government’s deficit reduction and the ability of banks to lend again on consumer-friendly terms as their own underlying financial position improves
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“This should not be confused with boom and bust. We are forecasting a gradual four-year recovery at an annual rate of about 4 per cent.”

After the global economic downturn following the crash of 2008, house prices have been hit hard across the UK, with the number of mortgages granted to hopeful homeowners slashed.

The CEBR calculates the average cost of a property today is £175,000. By 2015 that will be £205,643. The 4 per cent year-on-year surge is predicted to start at the end of 2011 and carry on until 2015. It would see the average UK house price rise to above the 2007 high of £191,340.


Read more: http://www.express.co.uk/posts/view/249854House-prices-to-soar-by-16-#ixzz1Nu950Bwf

shortchanged_2

Only in the Express.

I think I'll rush out and buy a little housing portfolio now. So if I buy 10 houses now at £100,000 a pop with IO mortgages, in 4 years time it will net me a tidy little £160,000 pre tax profit.

That's a cracking little return. Beats a savings account hands down...........................................................before I do this now is it guaranteed to make me rich??

Sibley

This is the news we have been waiting for. Fantastic start to the day.

tod123

Calling renters, Calling renters, its time to get your buying hats on, dont miss the boat this time!

crash123

Didn`t the CEBR predict house price rises of 30% between 2008 and 2011 or something like that.

Sibley

This front page story has totally finished any talk of house price reductions. Sellers will just wait to get the right money now. No wobbles no worries and no crash.

If you want to have a good laugh look on house price crash. This news has not been received well on there. :rotfl:

They have even copied my name on the Express comments section. They know it's over now 100%.

Today is probably the best day ever for home owners. Nice warm feeling. You know you're going to make money.

michaels

Or lose money even if the prediction is correct with inflation over 5%...

Sibley

I know it's difficult for some people to deal with but the fact of the matter is if you are renting now you will be funding somebodys retirement.

If you buy the seller will have a lump sum or you can rent and give them a monthly income.

That's why there is so much bitterness.

doire_2

I think the fact Cheryl got axed from the X Factor is much more interesting.

brit1234

Has anyone got a copy of the face palm picture for yet another Hamish CEBR story?

I so wonder why the builders fund this report every 6 months, I'm sure the CEBR are independent and never wrong. :rotfl:

abaxas

Wohooo!

House prices to go up by 15%.

Actual number of houses sold to go down more than 15%.

How exactly are people going to pay for these? Obviously no-one thinks of that.