Good news for homeowners in relation to property prices
November 29, 2010
Over the past couple of years many homeowners who may have been hoping to see the equity levels in their homes keep rising may have been disappointed after the property bubble burst and house prices came crashing down. However, whilst some homeowners may still be concerned over the prospect of property prices slumping further a recent report has suggested that this will not be the case.
According to the report from The Centre for Economics and Business Research the property market will edge up a little in the coming year, with property prices expected to increase by around 2.2 percent. The low level of increase in property prices is likely to be down to proposed public sector cuts and household incomes, which are still under intense pressure.
However, the future for homeowners looks brighter after next year, with the CEBR claiming that property prices will gain momentum after next year thanks to the rock bottom base interest rate from the Bank of England, which still stands on just 0.5 percent. Other contributory factors are said to be cash injections from the Bank of England, and shortage of properties in the UK.
The CEBR claims that house prices could increase by 16 percent by 2014, which will come as great news for homeowners. However, there are other economists that believe house prices will slide. Howard Archer from Global Insight believes that house prices will fall by 10 percent over the coming year, whilst Capital Economics predicts a fall of 20 percent between now and the end of 2012.
The CEBR said: ‘Quantitative easing is a very powerful medicine and is likely to have a strong impact on the housing market eventually. House prices may not move much during 2011 but they are likely to rise significantly in the following three years on the back of quantitative easing to offset the impact of the fiscal retrenchment.’
- Will house prices go back up again? Over recent months the financial headlines have been filled with stories about falling house prices, and many industry officials have been making one gloomy prediction after another in relation to how quickly and by how
- Mixed news for first time buyers Whilst first time buyers have experienced extreme difficulties over the past couple of years when it comes to being able to get onto the property ladder a number of changes have taken place over recent
- Will house prices rise or fall? A huge number of industry officials and agencies have been predicting since last year that since the housing bubble burst house prices would continue to fall for the next couple of years in the UK.
- First time buyers could be affected by return of buy to let landlords According to a recent report a rising number of lenders are starting to approve mortgage deals for buy to let borrowers following a rocky period when fewer and fewer of these deals were being approved.
- Right Move report a return to peak for London house prices According to recently released figures property prices in London have managed to claw their way back to the level that they were at when they reached their peak back in 2007. In fact, officials from
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