"The Easy Way to Get Your Best UK Mortgage"



Bookmark This


Google Feeds


Yahoo Feeds


AOL Feeds


Newsgator Feeds
About Us
Your Privacy
Contact Us
Tip Our Charity
This website is Approved by Cradon Investments Ltd Authorised and Regulated by
the Financial Services Authority FSA No: 300505


TrustGuard

UK House Prices Forecasts and Predictions for Home and Property in the UK at 12st January 2007

UK House Prices Situation: Strong

UK House Prices Forecast: Continued growth early in 2007, possible slowdown later in the year.

Northern Ireland Prices Overtake UK Average

For the first time since 1980, the average house price in Northern Ireland is higher than the UK average, according to new figures from the UK's biggest building society, Nationwide.

2006 saw Northern Ireland's house prices grow by a spectacular 44.1%, causing the average price to increase to £181,031, leapfrogging the UK average of £172,065.

Experts Divided Over House Price Affordability

A survey of 41 economists performed by the Financial Times has shown that 30/41 of them believe that current house prices are sustainable, citing relatively low mortgage rates and a strong employment market as evidence that people can afford current prices.

In contrast, a study performed by Lombard Street Research (LSR) for the Daily Telegraph claims that houses are at their most overvalued for 15 years. LSR maintain an affordability index, and say that this has fallen consistently over the last year.

LSR, who have predicted 2007 house price increases of 10%-15%, believe that falling affordability is becoming a real danger. Diana Choyleva, head of UK services at LSR, said that "If there is strong house price inflation this year in the low double digits and we have base rates peaking at 5.25% then house prices could become unaffordable by 2008."

LSR's forecast for 2006 was very accurate, correctly predicting a 10% growth in average prices.

Sellers Trying To Get Out Before Prices Fall?

The owner of UK property website PrimeMove.com, Henry Pryor, has said that he believes house prices may have peaked at the end of 2006. Pryor said that in November he started to notice a trend of people who were "motivated by greed" selling their homes without buying another property, because they feared the market was about to fall.

In an interview with the Financial Times, Pryor said that "We may look back and say the fourth quarter of 2006 was the peak."



[improve this article]

Browse over 200 Free Mortgage Tips

Your Complete Guide to UK Mortgages

Find Out How to Win the Race to Buy Your Home - Home Buyers Guide

How to Sell Your Home

Learn How to Save ££s by Remortgaging

Read the Insider Info on Home Insurance

Best Buy UK Mortgage Tables

UK Mortgage Calculators

UK Mortgage Quotes

First Time Buyers

Self Employed Mortgages

Bad Credit Mortgages

Overseas Mortgages

Common Questions / FAQs

Mortgage Definitions

Mortgage Lenders UK List

LATEST MORTAGE UK NEWS

Site Help

About Us

Your Privacy

Contact Us

HELP

Mortgage Guide Site Map

Tip Our Charity