29
Jul
English home prices 'set to rise'
Average house prices in England are set to rise by 25% by 2013, a
National Housing Federation report claims. It sees prices falling
4.4% in 2008, 2.1% lower in 2009, recovering by 2010 and rising at
over 9% in 2012 and 2013. People living for longer, delaying
marriage and getting divorced more were all adding to demand for
homes. While there are questions over how accurate five-year
forecasts can be, there is a general concern that new homes being
built will not meet demand. "As soon as the economic outlook
improves, house prices will resume their previous upward
trajectory," said the Federation's chief executive David Orr.
However, a number of analysts have been suggesting that house
prices will fall by at least 7% in 2008 since the start of the
year. Others have been suggesting bigger drops in prices over the
year. The Federation, which represents housing associations in
England, predicts that rising demand and falling supply will push
the cost of the average home in England to £274,700 in 2013.
"People are living longer, they're delaying getting married and
they're more likely to get divorced - meaning that we now have more
households than ever," said Mr Orr. He said only 75% of the new
homes needed were being built each year, which was also hitting the
availability of affordable homes. Others have been suggesting
bigger drops in prices over the year. BBC NEWS 28/7/08