House prices to rise 20 per cent - CEBR

Published 01st Feb 2010

House prices will rise more than six per cent during 2010 and will be around 20 per cent higher than today's levels by the end of 2013, according to the Centre for Economics and Business Research.

The CEBR has revised up its housing forecasts thanks to an improvement in availability of mortgages and more loan approvals. It also believes that interest rates will stay at 0.5 per cent until at least mid-2011.

Though it thinks rising unemployment and cuts in public sector spending will keep the lid on the market in 2011, it expects an overall shortage of homes will push prices up further in the following years.

However, Hometrack's monthly housing survey showed a rise of just 0.1 per cent in January, suggesting this year has got off to a slow start.

Source: ' Daily Mail '

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