UK house prices tipped to increase

Published 08th Aug 2008

House prices in the UK could go up by nearly a third during the next three years, industry analysts have predicted.

According to the Centre for Economics and Business Research (CEBR), property values in Britain should halt their decline in 2009.

The organisation believes this will be followed by growth in the market, which will see prices rise by about 30 per cent by 2011.

This, it stated, is likely to be fuelled by problems in the construction sector, as current economic problems have led to fewer houses being built.

As a result, the limited supply could drive up the cost of existing properties.

Richard Snook, economist at the CEBR, commented: "With the fundamentals of the housing market still relatively tight, the credit crunch might already have sown the seeds of the next house price boom."

This comes after the National Housing Federation predicted that 2013, a typical home in England should cost about £274,700.

Source: ' Property Investor '

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