29 Apr

House prices set to rise "sharply"

House prices set to rise "sharply"

House prices could be set for a rapid increase when the market recovers, a member of the Bank of England's Monetary Policy Committee has stated.

Kate Barker said such a trend could be caused by the difficulty the construction industry may have in meeting the government's target to build 240,000 new homes per year by 2016, an aim she labelled "difficult, if not impossible" to achieve.

She added: "When the housing industry was booming, we still only achieved 200,000 new homes in one year, which raises the prospect of prices rising sharply again in the future."

Ms Barker also said that the buy-to-let industry will have an expanded role in the future as people continue to get on the housing ladder later in life.

Buy-to-let investors must concentrate carefully on the purpose for which they are investing before they buy, manager at financial advice and buy-to-let mortgages firm Clarity Commercial Chris Jenkins recently advised.

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