You are here: Home - News -

House price boom predicted

by: Mortgage Solutions
  • 25/01/2010
  • 0
A housing market poll conducted by Reuters has revealed that some organisations expect house prices to grow by as much as 12.5% in 2010.

More than 30 companies and trade bodies were canvassed for the survey, including Rightmove, Capital Economics, John Charcol and the Council of Mortgage Lenders.

While the median expectation for house prices in 2010 was a more modest 1.6%, it is clear that some experts are markedly more optimistic.

The median forecast for house prices in 2011 was 2.5%, but again one contributor – unnamed by Reuters – predicted a 13% rise next year. Two thirds of those surveyed said house prices had already stabilised.

Also in the poll, the average number of mortgage approvals over the next 12 months forecast by the group of contributors was 70,000 and the average sustainable house price to earnings ratio was four.

Ray Boulger, senior technical manager of John Charcol, said: “It is interesting to see such a wide spread of expectations for house prices over such a short period. Looking at consumer confidence indices is often one of the most accurate ways of making predictions as people are more likely to buy if they expect a rise in prices.”

Elsewhere, fund manager Henderson also has high hopes for the housing market, predicting an 11% leap in the next two years.

There are 0 Comment(s)

You may also be interested in