The economists at the Centre for Economics and Business Research predict that property prices will be only 2.2% higher next year, because of rising unemployment. But low interest rates and the shortage of housing means that the market will probably see house prices rise by 16% over the next three years.
Douglas McWilliams of CEBR said, “House prices may not move much during 2011, but they are likely to rise significantly in the following three yearsâ€. The group further predicts a 4% rise in 2012, a 5.4% rise in 2013, and another 4% rise in 2014.
Other economists have widely different predictions: IHS Global Insight expect house prices to have fallen by 10% by the end of next year, and Capital Economics expect a 20% fall before the end of 2012.
www.PropertySurveying.co.uk 17/11/10