House prices will rise by an average of £1000 a month this year, a new report claims.
The Centre for Economics and Business Research (CEBR) said it saw no evidence that increased interest rates would affect the cost of homes and forecast that house prices will increase by 7.6 per cent during 2007.
One of the report’s authors, John Ward, said, "The underlying fundamentals of the housing market continue to support prices. Even though interest rate rises may act as a dampener on the market, people are spending considerably less of their incomes on mortgages than in the early 1990s."
The study also reported that the average UK house price was £187,000 and was likely to be £225,000 by 2010.
An increased in housing demand, high employment levels and a stable economy were reported to be the reasons behind the predicted drive in property prices.
A report by the Royal Institution of Chartered Surveyors claimed that recent interest rates rises will see more first-time buyers struggle to get onto the property market during the next 12 months.
The survey from Halifax Estate Agents also found London and the south east of England registered strong price growth, buoyed by high City bonuses and a shortage of housing supply.
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House prices to rise by a thousand every month
Mon, 29 Jan 2007
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