House prices to surge 17% during the next five years

Rising house prices could increase the value of buy to let portfolios by around 17% over the next five years, according to a prediction by a leading property consultancy.

Increased confidence and, low interest rates and easier mortgage availability will help the market, says the firm, CBRE.

Mortgage approvals are already at their highest level since 2008, according to official figures, which show 62,000 applications were approved in August.

However, although average prices are set to rise nationwide, CBRE feels London and the South East will benefit more than the rest of the country.

Jennet Siebrits, CBRE?s head of research, said: 'A continued improvement in lending has been a significant factor in the increased demand across the property market. Notably, the Funding for Lending and Help-to-Buy equity loan schemes have proven particularly successful.

?The first phase of Help-to-Buy has achieved its objective of stimulating the UK property market, through delivering over 15,000 reservations since April of this year. We expect the second phase of Help-to-Buy to become a 'game changer' and therefore anticipate it will help in the region of half a million prospective buyers who are seeking to enter the property market.?

Siebrits also explained London continues to benefit from overseas investment as buyers looking for more politically and economically stable environments seek to move their funds into the UK.

Easier mortgage funding is also pushing up land prices around the country as developers look for prime residential development sites, claims the CBRE.

The Office of National Statistics latest house price index, for August, put the average UK home price at £247,000 ' a 17% increase over five years would see that average surge by £41,990 to £281,990.

Year-on-year house prices increased by 3.8%, said the ONS.

The figures also show house prices have surpassed their pre-crash 2008 levels, although they are still around 10% less than the peak in 2004.

 

The article House prices to surge 17% during the next five years appeared first on LandlordZONE.

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Article courtesy of LandlordZONE
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