Housing growth set to improve - Mortgages - News - Moneyfacts


Housing growth set to improve

Housing growth set to improve

Category: Mortgages

Updated: 22/07/2013
First Published: 22/07/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Growth in the housing market is expected to increase at a steadier rate than initially predicted, according to a new study by Savills.

According to the company's latest market forecast, house price growth is estimated to average 18.1% by the end of 2017 compared with the 11.5% originally forecast in November last year.

Residential house prices are expected to increase by 3.5% over the remaining months of 2013, leading to suggestions that over the next two years, average prices could grow to exceed the peak last seen in 2007, just prior to the financial crisis.

Commenting on the findings, director of Savills residential research, Lucian Cook, said: "A combination of low interest rates and stimulus measures means there is capacity for improved price growth over the next three years or so.

"But it comes at the price of later price growth in 2016/17 when interest rates are expected to start rising.

"Overall, this means that on an inflation-adjusted basis our revised forecasts indicate that prices will increase by just 2.3% over the next five years."

What next?

Compare 2 year fixed rate mortgages
Compare 5 year and over fixed rate mortgages
Compare variable and tracker rate mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.

Mortgage arrears on the rise

Mortgage arrears had been falling for several years, driven by low mortgage rates and improved affordability – but unfortunately, that’s come to an end, with cases of mortgage arrears having now risen for the second quarter in a row.