Please Note: This Article is 5 years old. This increases the likelihood that some or all of it's content is now outdated.

A recent report by Jennet Siebrits of CBRE says that UK property prices are expected to increase by 30% over the next few years.

The CBRE property agency believes that this will occur despite speculation that interest rates will rise in the near future.

They say that these gains will be led by the London and South East market, even if interest rates rise from their long term low of 0.5% by the end of 2014.

These continuing price rises they say will be as a result of an improving economy and a drastic shortage of suitable housing.

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Jennet Siebrits has said that the high increases in house prices over the last 12 months is typical at the start of an economic recovery, due to pent-up demand being taken up. She predicts this rapid rise will begin to subside as the recovery takes hold.

Currently, with low interest rates, she says, affordability is helping buyers as mortgage payments in relation to pay remain favourable.

As interest rates start to rise she expects the process to take time and progress incrementally, so having minimal impact on mortgage affordability.

Please Note: This Article is 5 years old. This increases the likelihood that some or all of it's content is now outdated.

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