House Prices Set To Increase
Wage rises and population growth in 2014 are the two factors which are set to make house prices soar over the next five years according to the Centre for Economics and Business Research (CEBR).
In their recent study, they have shown that stagnant wage levels and deepening economic crises across the Eurozone have meant house prices have not been as positive as some might have hoped in 2013. However, this is all set to change in the coming years – music to the ears of homeowners and property investors alike.
Over 20% Rise Predicted
As the economy continues its upwards rise over the coming months, experts are now predicting that the average price of a home in the UK could increase by as much as £45,000 in the next five years.
This is an increase of more than 20% on today’s prices and equal to growth of approximately £750 per month over the medium term.
Greater Demand for New Homes
As this news comes at a time when mortgage rates reach an all time low, it is likely that such a positive outlook for the future will also encourage more people to step onto the property ladder. This will provide even greater buoyancy to the property industry and further upward pressure on the prices within it.
Combine this with the ‘Help to Buy Scheme’ being introduced by the current Chancellor, and it is possible to see significant potential for investment in property across the UK.
Building Momentum for Building
Within the £130 billion scheme, the Chancellor aims to encourage the building of new homes by making mortgages more readily available to first time buyers, further pushing up the price of property, making it more attractive to the building industry.
CEBR predicts that in 2015 alone approximately 5,000 new homes will be built to support the Chancellor’s new initiative adding further momentum to an ever strengthening building industry.
And as potential new homeowners and builders alike see the potential for further developments,CEBR predict this will soon make their recent positive predictions becoming a reality.