The signs say UK house prices will rocket
July 29, 2008 by OPPE News
An independent economic report has said the average house price in England will rise by 25 per cent after the market stages a recovery in 2010.
The National Housing Federation (NHF) said the study by Oxford Economics shows prices will continue to fall into 2009 but will rapidly increase again by 2011.
By 2013, the average house will cost £274,700, according to the statistics.
Demand is expected to eventually surge again as at “least” 223,300 households are expected to form each year to 2026.
NHF chief executive David Orr said:
“Demand for housing is going up, while the supply of new homes is going down. This means that as soon as the economic outlook improves house prices will resume their previous upward trajectory.
“People are living longer, they’re delaying getting married and they’re more likely to get divorced - meaning we now have more households than ever.”
He added even though house prices have fallen, affordability has not improved “one iota” and called on the Government to work with housing associations to ensure housing targets are met.
The report by Oxford Economics, called Home Truths 2008, said:
“Demands for 25 per cent deposits are now common and Bank of England interest rate reductions and liquidity injections have done little to loosen mortgage lending terms.
“First-time buyers are consequently in as difficult a position as they were at the height of the market.”
The news comes as figures from the Land Registry showed prices fell by an average of one per cent in June.
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