"30% house price hike by 2019" claim
Just as most commentators are warning of a possible slowdown in house price growth, so respected consultancy CBRE says it is revising its 2014 forecast upwards.
It says by the end of the year average prices across the UK will be 12 per cent higher than in the new year, although it too believes the rate of growth will slow towards Christmas.
More positively, it says the market will remain strong over the next five years, underpinned by an improving economy and an underlying lack of supply. It predicts that house price growth will continue across the UK from 2015 to 2019, rising 30 per cent on average, with London and southern England seeing the largest increases.
“The sharp house price growth over the last year is typical at the start of a recovery, due to the release of pent-up demand. This rapid rate tends to subside as recovery becomes established” says Jennet Siebrits, CBRE’s head of residential research.
“Affordability is the key going forward and mortgage payments as a share of take home pay currently remain relatively favourable when compared with long-term trends. When interest rates start to rise, we expect it to be at slow and considered increments so the impact on mortgage affordability may be quite minor and contained” she says, striking a more optimistic note than many other analysts when it comes to base rate rises.
No comments:
Post a Comment