5% property value rise expected by Finance News Bulletin

Published: 16/01/07

UK house prices are predicted to go up by as much as five per cent this day, driven by a strong financial system, good employment figures and limited supplyA report from Nationwide suggests that home prices will grow by more than initially expected during 2006 and the building civilization has raised its expectations in light of without warning strong house price growth in many regionsIt is forecast that home prices across the UK will increase by around five per cent this year, with the London marketplace driving growth in surrounding regionsThe study claims that Scotland and Northern Ireland will continue to observer positive growth in 2006, but rapid inflation, of almost 25 per cent in Northern Ireland this year, will reason housing market growth to slow next year

The decision have an account of England's monetary policy group (MPC) to raise interest rates by a quarter point to 475 per cent and affordability issues are probable to curb price rises, though Nationwide has still opted to lift its forecast for housing market growth of between zero and three per cent in light of physically powerful July figuresFionnuala Earley, Nationwide group economist, supposed: "The resilience of the market so distant this year in the face of deteriorating affordability suggests that there is still enough demand in the market to support prices"However, we wait for some softening towards the very end of the year, mostly due to affordability, but also reinforced by the shock increase in interest rates, which can do nothing other than add to caution

"The ground Registry released data this week presentation that annual house price growth stood at 77 per cent by June this year, with the average UK home now costing nearly £200,000Terms of employ Advertising Resources manufactured goods guides Press releases

Visit original article: