House prices are heading up, not down, say experts

Published 02nd Aug 2010

Doom-mongers who are predicting a 'double dip' in house prices have got it wrong, experts said today.

The Centre For Economics And Business Research (CEBR) said prices will increase 4 per cent this year and continue rising until 2014, mainly due to a shortage of homes in the UK and low interest rates.

Last week, there were concerns among homeowners after a report by the Nationwide Building Society revealed that property prices fell by 0.5 per cent in July - the first decline since February.
On the up: House prices are set to rise by 4 per cent this year according to the Centre of Economics And Business Research

On the up: House prices are set to rise by 4 per cent this year according to the Centre of Economics And Business Research

And the National Institute of Economic and Social Research forecast that the market would fall 8 per cent in real terms over the next five years.

The CEBR said: 'It is unfortunate, but hardly surprising, that many commentators are purporting that the minor correction in house prices over recent months is a prelude to an even steeper decline that will engulf the housing market over the coming years.

'Those forecasters projecting a double dip have got it wrong.'

The CEBR expects moderate rises from now until the end of 2011, but believes that prices will increase by 5 per cent in 2012, 5.4per cent in 2013 and 3.9per cent in 2014.

Source: ' Mail on Sunday '

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