CEBR Expects House Price Increases Through 2014
The Centre for Economics and Business Research (CEBR) has released information that is different from that released by the National Institute of Economic and Social Research (NIESR). Last week NIESR released expectations that house prices would continue their current fall and would dip to 8 per cent over the next five years. CEBR expects the market to increase around 4 per cent this year and continue rising every year till the end of 2014.
CEBR predicts 4% price rise for this year, 5% for 2012, 5.4% in 2013, and another 3.9% increase in 2014. The CEBR said: "It is unfortunate, but hardly surprising, that many commentators are currently 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 years. "Those forecasters projecting a double dip have got it wrong" said a CEBR spokesperson and that other forecasters have "ignored the housing market fundamentals." CEBR believes the recent price falls are a correction from the price increases in the beginning of 2010. They believe the market will support continued moderate growth in house prices because of ongoing low interest rates and a shortage of UK new home building.