4
Aug
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.
