Good News at last for UK Home Owners (Daily Express)
Monday July 28, 2008

HOUSE PRICES TO RISE BY 25%

INCREASE: Good news at last for home owners

Monday July 28,2008

By David Pilditch

HOUSE prices will soar by nearly a quarter over the next five years, it was predicted yesterday.

The average value of a home is set to reach £275,000 by 2013, a study says.

The biggest rise is predicted in the South-east where it is estimated that an average property will be worth £365,000 – an increase of nearly 37 per cent compared with the end of last year. A home in London is expected to rise by 15 per cent to almost £410,000.

The findings are revealed in a report published by the National Housing Federation. It shows that demand is growing but the supply of new housing has fallen dramatically. Just 75 per cent of the new homes that are needed are being built.

As a result, the impact of the credit crunch – with lenders reducing the supply of mortgages – will be out-stripped by the increasing demand for homes.

Fderation chief executive David Orr said: “Our report shows that despite concerns about the current housing market downturn, house prices will increase substantially over the mid to long term.

“Demand for housing is going up, while the supply of new homes is going down.