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 It is now over 6 months old so the content may be out of date.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."

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