What will happen to houses prices in five years time?
For millions of Britons their property is not just a roof over their heads it is a passport to financial security and even a pension. Anything that endangers the seemingly never-ending rise in house prices is always news.
The aim of this coursework is to find out what the house prices will be in five years time. I am going to research the housing market on the internet and send out questionnaires to a range of estate agents.
In Gordan Browns 1997 budget speech he said, "I will not allow house prices to get out of control". However ten years on and they have spiralled leaving thousands of people unable get onto the first step of the property ladder. So do we now need a crash in the housing market to level the playing field once more? Are crazy house prices creating a new generation of renters unable to buy?
I believe that house prices will steady and will not rise to much in the next five years as there is currently a crisis with first time buyers who cant afford to buy their own homes. However I don’t believe there will be a decline in house prices as therer is still a great demand.
On Tuesday the 2nd of October, the Office of National Statistics (ONS) said that UK house prices had raised by 204% in the past decade compared with a 94% increase in average wages.
In the past year alone, prices according to both Halifax and Nationwide have risen by about 10%, way above most analyst forecasts.
Average Cost: £210,578
Change in last quarter:
Change in last year: +9.25%
Prices across the UK rose by 0.5% in August, taking the average price across the country to £219,528.
However, the annual inflation rate for property fell from 12.4% to 11.4%.
The report confirms the evidence of other surveys, from lenders and surveyors, which have shown a recent downturn in the property market.
The drop in inflation shows clearly that the market is responding to the five increases in interest rates that the Bank of England has imposed since the summer of 2006.