Prices ‘will bounce back next year’
HOUSE prices will surpass their pre-crisis peak next year, according to economic forecaster CEBR.
Its quarterly Housing Prospects report also predicts that the average house price will climb 0.8 per cent this year and in five years time will rise by another 19.1 per cent.
Daniel Solomon, CEBR economist, says: “UK property prices will be driven to pass their pre-crisis peak for the first time by fundamentals such as a return to modest economic growth and restricted housing supply increases.”
He added that quantitative easing and the Government’s Funding for Lending Scheme, could also support property prices.