House prices 'to rise until 2014'
27/08/2010
A shortage in the supply of houses on the market will help house prices rise every year until the end of 2014, it has been claimed.
Those who predicted that there would be a double dip in house prices "got it wrong" according to figures from the Centre for Economics and Business Research (CEBR).
The National Institute of Economic and Social Research (NIESR) said the market would fall 8% over the next five years, which contrasts with the CEBR's predictions.
The CEBR said: "It is unfortunate, but hardly surprising, that many commentators are currently purporting that the minor correction in house prices over recent months is a prelude to an even steeper decline that will engulf the housing market over the coming years."
The CEBR said house prices growth will see moderate rise from now until the end of 2011, and said that prices will increase by around 4% this year.
Growth in the market will reach around 5% in 2012, 5.4% in 2013 and 3.9% in 2014.
Amid uncertainty over jobs and the emergency Budget, house-buyer numbers have decreased, and this led industry figures to raise fears that the market bounce back was over.
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