House Prices See Rapid Increase

Written by Becky on Tuesday 2 February 2010

House Prices Set to Return 2007 Levels

Recent predictions made by the Centre for Economics and Business Research (CEBR) suggest that the average house price is expected to climb by 6.5% to £178,000 in 2010.

The CEBR also believes that 2012 prices will return to those previously recorded in 2007, with a high of £198,000 expected a year earlier than predicted.

Increased Mortgage Lending

In their market predictions the CEBR said it expected banks and building societies to approve more mortgages, making it easier for buyers to access the money needed to purchase a house, in turn helping to push up prices.

Nationwide

Market predictions released by Nationwide also suggest prices could climb 10% on an annual basis, as the mortgage lender recorded a 1.2% rise in January 2010, more than double the 0.5% gain seen in December 2009.

Nationwide’s Chief Economist Martin Gahbauer claims:

Unless there is a fall in property values in February, annual house price inflation is likely to move into double-digit territory next month for the first time since May 2007.

www.payplan.com

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