House prices forecast to rise 14% by 2014
- 23rd November 2010
- Selling Property News
House prices may not rise much in 2011 but in the longer term quantitive easing will boost house prices.
House prices are to rise by 2.25% in 2011 and should finish the year 2010 an average of 7% higher, reports the The Centre for Economics and Business Research (cebr).
Douglas McWilliams, chief executive of cebr, comments: "Quantitative easing is a very powerful medicine and is likely to have a strong impact on the housing market eventually.
"House prices may not move much during 2011 but they are likely to rise significantly in the following three years on the back of quantitative easing to offset the impact of the fiscal retrenchment."
The London housing market continues to outperform most areas of the UK. In the last two quarters London house prices have exceeded those of most other UK regions. So far in November 2010, asking prices are 3.5% up on October 2010 (source:Rightmove). Whereas national trends saw house asking prices fall by 3.2% for the same period.
Last week, Zoopla property portal said that buyers from Asia are boosting demand in the capital. Erica Evans of Expatfindaproperty.com says that overseas buyers are strongly attracted to the London market:
"With demand in the UK slowing, many expatriates and overseas buyers have realised that now is a good time to start or to add to a property portfolio in London. Prices have recovered strongly from their lows of around a year ago and rental yields are generally exceeding mortgage costs for good quality properties in key areas such as Westminster, Wandsworth and Wimbledon."
Stephen Ludlow comments: "Now that lenders are stepping up their activity there is interest from buy-to-let investors at home in the UK and abroad. Homeowners worried about falling values will be reassured by London's continued popularity. If this forecast holds true, then buyers hoping for a longer term price fall may have to rethink their strategy."
...buyers hoping for a longer term price fall may have to rethink their strategy.
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