On the rise: House prices could rise by 7% as economy recovers and Government schemes help drive demand
02-28-2014
On the rise: House prices could rise by 7% as economy recovers and Government schemes help drive demand
Average house prices increased 1.6 per cent in the three months to October
They were 6.9 per cent higher than then same month a year ago, marking the strongest rate of growth since May 2010
Economists forecast average property values could grow by a further 1.5 per cent in the final two months of this year
By Daily Mail Reporter
The house market looks set to boom again as demand outstrips the supply of available homes, experts have warned.
Values could rise by at least seven per cent, adding nearly £12,000 to the current official average house value of £167,353.
Property analysts and financial experts said confidence in the property market is high as the economy continues to recover and interest rates are predicted to stay at 0.5 per cent throughout 2014.
Mortgage lender Halifax said average house prices increased 1.6 per cent in the three months to October
The Help To Buy Government-scheme, which offers taxpayer-backed loans to would-be buyers, have helped drive up demand, the Express reported.
Mortgage lender Halifax said average house prices increased 1.6 per cent in the three months to October, while they were 6.9 per cent higher than then same month a year ago, marking the strongest rate of growth since May 2010.
Rising property prices have been cited as both an indicator and a cause of the UK's economic recovery.
Economists forecast average property values could grow by a further 1.5 per cent in the final two months of this year before accelerating by 8 per cent in 2014.
Government schemes such as Right To Buy have helped drive up demand
The figures came after statistics revealed that home ownership in England has slipped to its lowest percentage level in a quarter of a century.
Just under two-thirds of householders in England are owner-occupiers – the smallest proportion since 1987.
Around 18 per cent of households are in the private rented sector, the highest level seen in records going back to 1980.
Meanwhile, the number living in socially rented accommodation, such as a local authority or housing association home, has fallen to 16.8 per cent, the lowest share since records began.
Around 14.3million households own their homes, four million are private renters and 3.7million are social renters, the English Housing Survey shows.
Home ownership peaked in 2003, when 70.9 per cent of homes were listed as owner-occupied.
Campbell Robb, of housing charity Shelter, urged the Government to ‘get to grips with our housing shortage’.
He said: ‘These figures confirm the historic shift that people across the country are already feeling – as house prices rise, the dream of a stable home is drifting further out of reach.