House prices expected to reach record highs in 2014
House prices will reach record highs next year above levels they were at the peak of the pre-financial crisis, according to a report.
Experts predict that in 2014 a typical house in the UK will be valued at £223,000.
This would mean that house prices would be 0.7 per cent higher than their 2007 peak.
The Centre for Economics and Business Research (CEBR) also estimates that house prices will rise by almost 20 per cent by 2018.
Business Cards From Only £10.95 Delivered www.myprint-247.co.uk
View detailsOur heavyweight cards have FREE UV silk coating, FREE next day delivery & VAT included. Choose from 1000's of pre-designed templates or upload your own artwork. Orders dispatched within 24hrs.
Terms: Visit our site for more products: Business Cards, Compliment Slips, Letterheads, Leaflets, Postcards, Posters & much more. All items are free next day delivery. www.myprint-247.co.uk
Contact: 01858 468192
Valid until: Friday, May 31 2013
The CEBR said initiatives such as the Funding for Lending Scheme (FLS) would support a revival of the property market in the UK. It added the FLS would help to raise the number of mortgage approvals and work to keep lenders offering cheap mortgages which will help more people to be able to afford to buy their first property and increase demand which should help house prices go up.
It also expects the Bank of England's quantitative easing programme to be increased by a further £75 billion to reach £450 billion by late 2013 and that this will support increased mortgage lending and raise property prices.
By 2018, house prices will have risen by 19.1 per cent to reach an average of £261,000, it added.
CEBR economist Daniel Solomon said: "UK property prices will be driven to pass their pre-crisis peak for the first time by fundamentals such as a return to modest economic growth and restricted housing supply increases."
Meanwhile, the latest Knight Frank/Markit House Price Sentiment Index reveals that households in eight of the 11 regions in the UK expect the value of their property to increase in 2013.
4 Comments
by thomas1996
Wednesday, January 23 2013, 6:06PM
“Matt1006,
You are not alone - my neighbour bought his 4 bedroom house with 3 bathrooms & a garage, built in 2006 when it was barely a year old in 2007 for £247,500. It has been on the market and failed to sell twice and now back on the market in December for £190,000, reduced last week to 'offers over £180,000' They are moving up to the North East with his job and therefore 'has' to sell. And no, it's not on a huge new bland estate packed in like shoe boxes such as Kingsway or Coopers Edge.
Funny how estate agents never mention a 20% - 25% drop in house prices in the last 5 years!”
by Matt1006
Wednesday, January 23 2013, 4:40PM
“What we need is affordable property to rent, not buy. Problem is that as house prices continue to rise, more & more will be priced out of the market (as thomas1996 states), so the demand for rental properties will continue to rise. As will the numbers on housing waiting lists.
If this trend continues, more & more will be forced to rent, and the landlords already know this, and the more unscrupulous ones are probably exploiting it.
My flat was valued at £122k in early 2008 (by 3 different agents), just before the market imploded. I couldn't sell, even when reduced down to £107k six months later, and I took it off the market and am still in the same flat. Most recent flat (same as mine) to sell in my development went for £91k last October. Top end of completed sales here is £116k in May 2007, so effectively a £25k (21.5%) drop in 5.5 years (not the same flat, but they all basically the same size / layout, so are comparable).
There is no way flats here are going to be worth that sort of money again within next year / 18 months.
My best bet would be to hold onto my flat and rent it out, except I then couldn't afford to buy a 2nd property to live in myself as I won't have released the equity in my current property. So although I've been on the property ladder for over 13 years, I'm potentially trapped too.
Glad I bought when I did (1999), but I'm now potentially lumbered with an ideal 1st-time-buyer's property with no FTB's out there in a position to buy a £90k+ property.”
by thomas1996
Wednesday, January 23 2013, 3:44PM
“What planet are these people on? There are houses near me that have been for sale for over a year, they've had several price drops and are now priced about the same as they were worth in 2005. People on local wages of around £6.50 to £8 per hour simply cannot afford an average mortgage on a £160k property of £1,000 per month including council tax for 25 to 30 years, let alone needing to find a 20% (£30,000) deposit in cash!!!
Get real, the housing market is struggling and new house builders are now finding they are getting stuck with a lot of part-exchanged houses that no-one can afford or want.
These days young couples start off by renting not buying a small house for around £550 to £700 a month rent and find it's so hard to save for a cash deposit with all the other rising costs of utility bills & running a car each.”
by a_calm_voice
Wednesday, January 23 2013, 2:19PM
“This is bad news for everyone except estate agents whose commission is related to house prices and landlords hoping to make effortless profits from the capital appreciation of their properties. It's of no benefit to ordinary householders who will have to use any gain to pay for their next home or for their care in old-age.
It'll mean it's increasingly difficult to young people to buy their own home. No wonder, as has been reported today, young professional people are abandoning Britain to work abroad. The combination of our awfully weather and our unaffordable homes is driving them away.”