Predictions about UK Housing Market Include Higher House Prices
A former Bank of England Monetary Policy Committee member recently made bold statements regarding the future of the UK housing market. During an event in Westminster over the past week, Professor David Miles made remarks concerning the future of house prices and income which startled those looking to purchase property in the coming years. He claims inflation of the past thirty years will continue and create house prices which continue pushing upward for years to come.
The comments could cause those looking to purchase property on the horizon under great stress, and possibly dash hopes for many others. Over the past three decades the UK housing market has been strapped with enough available properties to house those in need. He claims incomes for those looking to purchase property will be unable to keep up with rising housing costs.
Although property seekers could possibly be facing more challenges in the coming years, current home owners are in an envious position when considering a remortgage. That sector continues to be stuck in a hotbed of activity, with many house owners finding attractive deals right now. Many experts are urging those who are thinking about applying for a remortgage to not wait much longer. Rumours of possible interest rate hikes are getting louder.
David Miles commented on possible inflation and its effect on the UK housing market, saying: “UK house prices have not just gone up relative to the price of things we buy but also relative to incomes. Whichever way you cut it, it's been an extraordinary period of rising house prices.
“The big question is can we expect the next 40 to 50 years to look like the last 30 to 40: house prices rising for a sustained period into the future? I think it not implausible that this might be true.”
Miles added: “It's very difficult to work out whether rising house prices relative to incomes are just a bubble that has to reverse itself or is it simply a continuation of the equilibrium path that we are on which is almost inevitable if population and average incomes continue to rise?”