Housing growth set to improve - Mortgages - News - Moneyfacts

News

Housing growth set to improve

Housing growth set to improve

Category: Mortgages

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

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.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

The time is now for remortgaging

Mortgage borrowers have been urged to review their existing deals after it was revealed that remortgage opportunities continue to flourish in the post-Brexit vote world.

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.
 
Close