UK house prices 'will continue to rise'

01/02/2010

The latest predictions for UK house prices could offer hope to those struggling with negative equity on their mortgage.

House prices could rise by as much as six per cent in 2010, according to the latest figures from the Centre for Economics and Business Research (CEBR).

CEBR had previously forecast an increase of between two and four per cent, however it has since revised this figure up, and by 2013 the research company has envisaged an increase of 20 per cent on today's prices.

Benjamin Williamson, an author of the report, explained the reasons behind the increase to the Telegraph: "With the rate of mortgage lending more than doubling over this period of time, a shortage of new properties on the market, low interest rates and unemployment not rising nearly as fast as expected, it is easy to see how prices have moved so quickly."

The government's Land Registry recently recorded the first positive annual house price change since May 2008, as December's data shows an annual price rise of 2.5 per cent.

Director of EuroDebt Kevin Still commented: "Sustained equity growth may allow some homeowners to look at full and final settlements for their unsecured debts, which have risen through the recession. Many have taken advantage of low interest rates to clear debt."

Posted by Fiona Smith

Tags; Housing Debt and Bills,

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