UK
House Prices Situation at 17 8 2007: Slipping in some
areas, stable elsewhere
UK
House Prices Forecast: Continued stability with regional
rises and falls
NHF
Predict 40% Rise in House Prices
The
National Housing Foundation's (NHF) prediction that
house prices will rise by a further
40% over the next five years has been widely reported
in the news this week.
However,
it is dramatically different to most other forecasts,
which suggest that most homes are currently overvalued
in comparison to people's incomes, and predict a period
of very limited growth.
So
why the difference? It's hard to avoid coming to the
conclusion that the NHF have something of a vested interest
in house prices rising, as this justifies
the building of more social (affordable) housing. The
NHF are the industry body who represent housing associations
across the UK.
That's
not to say that the NHF is wrong to argue that shortage
of supply in areas such as London has led to higher
prices - but most other analysts believe that in most
areas of the country, affordability pressures will prevent
the dramatic further rises the NHF has forecast.
House
Prices Won't Fall In 2008
One
of the UK's leading estate agents, Savills, has published
its predictions for 2008.
They
believe that the recent interest rates rises have contributed
to a slowdown in growth, but that unless
there are significant further interest rate rises, the
likelihood of major falls in house prices
is low.
Savills'
spokesman Lucian Cook commented that "Current interest
levels are impacting on affordability, however as long
as there remains a reasonable prospect for rates to
drop below their current levels by the end of next year,
we do not predict falls in average UK house prices."
Savills'
prediction for average house price
growth in 2008 is 5%.
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