4 Aug

House prices tipped for new boom

House prices tipped for new boom

A new surge in house prices is likely to occur between 2009 and 2012, it has been predicted today.

The Centre for Economic and Business Research (CEBR) has said that the large fall in the number of new homes being built at present due to low demand will mean that the market will face a problem of insufficient supply when it recovers.

As a result, the scarcity of homes will push up prices by as much as 30 per cent, the body suggested.

The CEBR forecast follows a similar prediction made last week by the National Housing Federation.

It predicted that house prices would carry on falling this year and in 2009, but the market will start to turn in 2010.

Beyond this time, the federation predicted, house price inflation will increase to such an extent that in 2013 the average house price in England will be 25 per cent higher than now at £275,000.
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