What do you expect to happen to happen to the demand for houses in the UK for the next 10 years?

Wimpey, reported recently that profits before tax during 2004 were up 19% to £450.7m, and announced that "visitor levels and interest have been encouraging, and reservations at the stronger end of our expectations".

Many experts are now predicting a flood of new money into the buy-to-let sector of the property market which is due to the confirmation last week that from April 2006, investors will be allowed to hold residential property within a pension fund.

UK population is increasing at a rapid rate partly due to a large amount of immigration in the last decade; many of these people seek housing in the UK creating an increase in demand for houses; however a proportion of these people have sought asylum in the UK and are unable to afford the current housing prices so therefore go into rental accommodation. I think in the short term this will result in an increase the amount of people renting houses but might also cause a shortage of houses available for rent; therefore creating a higher demand for rental properties.

Interest rates also determine the demand for housing as people are unable to go into mortgage arrangements if interest rates are too high. This August interest rates were cut which has been said to have increased short term demand for houses this Summer.

In conclusion: I predict that over the next decade; rising incomes, an increasing population and increasing number of households should push up the demand for both owner-occupied and rented accommodation in the UK but in the short term other factors will have a large effect on the demand for housing such as changes in interest rates, changes in law and property speculation.