House Prices See Rapid Increase

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.

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Warning Over Credit Card Use to Pay Mortgage

1 Million People Pay Mortgage With Credit Card

Research conducted by housing charity Shelter found more than 1 million householders have resorted to credit cards in a bid to pay their mortgage during the last twelve months.

The survey highlighted 6% of those who were liable for paying their rent or mortgage had used credit cards as a method of payment, accounting for more than 1 million people.

Further findings saw 1 in 12 Londoners resorting to credit cards to pay their mortgage or rent.

Kay Boycott, Shelter’s director of policy and campaigns said:

‘This is a shocking discovery, that over a million households in Britain are in such desperate circumstances that they need to borrow money on credit cards to pay for basic housing costs’.

Warning

The charity has issued a stark warning to people about the dangers of using credit cards which could result in the loss of their home, warning that defaulting on their credit card repayments may lead to their homes being repossessed.

Seek Advice

The Charity advises those struggling with payments to seek advice immediately. You can find out more information by visiting the Shelter website, offering online advice.

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