The Centre for Economics and Business Research (CEBR) predicted that the value of the average house would jump by nearly 8 per cent from £179,500 to £193,000 in 2007.
This is despite recent rises in interest rates and fears that first time buyers are being priced out of the market. Continued house price rises are due to:
The strong growth in earnings in the city.
Shortage of Supply of housing
Real interest rates are still relatively low
Strong Economy
Banks willing to give bigger loans to first time buyers, through increased use of interest only mortgages
However not all economists agree with this.
Sunday, February 11, 2007
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