Cebr says house prices are set to Boom 25% in 4 years
HOUSE prices are set to boom 25% over the next four yours according to the Centre for Economics and Business Research (Cebr).
The Cebr are predicting an increase in house prices of £52,000 to an average home price £272,000 by 2021 as confidence in the UK housing market remains high.
The current average house price is £220,000.
Cebr economist, Kay Daniel Neufeld, said “already towards the end of 2016 indicators pointed to a stabilisation in the housing market, a trend that has continued in the first months of 2017.
“Transaction numbers are slowly recovering from the introduction of a stamp duty surcharge on second homes in April 2016, which has led to considerable distortions in the market.
“Mortgage approvals, are nearing post crisis heights, boosted by low interest rates and favourable borrowing conditions.”
What will the HPC crowd do now?
They’ve been hanging on for years waiting for their House Price Crash! They hoped the attack on landlords by the Government would bring about their beloved House Price Crash!
Instead it looks like there will be a House Price Climb!
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Member Since September 2016 - Comments: 2533 - Articles: 73
10:26 PM, 11th April 2017, About 9 years ago
Ha. We can see why the envy and jealousy gets out of control. It’s because others were too scared to take the plunge and buy a property when they could; they were scared that it might drop in price and they would have made a mistake. So they don’t act. They kind of freeze. Then the prices go up, they feel sickened by their mistake and so they pray for something catastrophic to happen so that prices can fall massively… Well, good luck with that one.
Member Since June 2014 - Comments: 1564
9:20 AM, 12th April 2017, About 9 years ago
A big bonus of price rises is that it drops LTV’s right down.
i.e What is now a 75% LTV mortgage, will be a 60% LTV mortgage in 4 years time.
A 60% LTV mortgage, will be sub 50% LTV.
10 year fixed BTL mortgages are available at 2.85% for such low risk lending.
So much for Basel III being the death of BTL.
Member Since October 2013 - Comments: 248
4:25 PM, 12th April 2017, About 9 years ago
I THINK this is the article:
https://www.cebr.com/reports/house-prices-in-2017-will-continue-to-rise-despite-brexit-negotiations/
Graph at the end suggests London house prices up by 50% between now and the end of 2021. Seems very bullish, so treat with a large pinch of salt!
Member Since July 2015 - Comments: 344
9:06 PM, 12th April 2017, About 9 years ago
This is fantastic news. A couple of weeks ago I was resigned to selling a property but I think that it could be worth staying put. Any cash flow problems can be dealt with by remortgaging my personal residence to release a bit of cash and this will keep me going while house prices soar.
When there is an imbalance of supply and demand, be in control of some of the supply.
Member Since June 2014 - Comments: 1564
9:17 PM, 12th April 2017, About 9 years ago
Reply to the comment left by “John Frith” at “12/04/2017 – 16:25“:
Seems very bullish, so treat with a large pinch of salt!
So post your source backing up your views.
Member Since February 2017 - Comments: 21
9:44 PM, 12th April 2017, About 9 years ago
Reply to the comment left by “H B” at “12/04/2017 – 21:06“:
Are you being sarcastic HB? Hard to tell. Where in the UK are your properties?
Member Since July 2016 - Comments: 7
12:18 PM, 17th April 2017, About 9 years ago
As much as I’d the headline to be true (a 25% uplift would do very nicely thank you), I find it increasingly difficult to see how another 25% increase in Greater London and Southern prices would be sustained. Interest rates cannot drop any further from today’s historic lows, so unless banks increase their income to lending multiples, or shared ownership fractional rates drop (ie from 25% shared ownership to say 15% or 20%) or average incomes drastically improve, where will the extra purchasing power come from?
Member Since June 2014 - Comments: 1564
12:35 PM, 17th April 2017, About 9 years ago
Reply to the comment left by “Jim Taliadoros” at “17/04/2017 – 12:18“:
30 year mortgages? Hereditary mortgages? Lifetime leases? Government backed pensioner HTB? Employer housing? Smaller housing? MIRAS reintroduction?
Loads of possibilities.