Mr. Miyagi Posted August 19, 2011 Share Posted August 19, 2011 (edited) The price of an average house will rise 14 per cent over the next four years, reaching the highest ever recorded in Britain, a report will say today.Respected analysts the Centre for Economics and Business Research predict the typical home will be worth more than £200,000 by 2015, up from its current £176,000. While the expected rise is still likely to be below inflation, the positive news will come as a relief to homeowners, many of whom have been left in negative equity as the value of their properties collapsed since the recession. Average house prices peaked at £191,200 in 1997. Confidence in the housing market has been falling but prices are predicted to rise Forecast: Confidence in the housing market has been falling but prices are predicted to rise Douglas McWilliams, CEBR chief executive, said the chronic lack of homes for sale is one of the main reasons that prices will start rising again. He said: ‘We do not expect a house price boom, but the housing shortage is likely to push prices gently upwards.’ In a further boon for homeowners, the CEBR believes the Bank of England will keep the base rate low for several more years. It was cut to 0.5 per cent in March 2009, slashing the cost of mortgages for millions. Mr McWilliams predicts the base rate is ‘unlikely to rise above 2 per cent before 2015’. But the positive news came as the Council of Mortgage Lenders said that gross lending last month was just £12.6billion, the lowest monthly total in July since 2000. Peter Rollings, chief executive of estate agents Marsh & Parsons, said: ‘Lending remains a world away from the level we need to see for the national housing market to pick up steam again.’ He added that would-be buyers were being ‘thwarted’ by ‘overly strict criteria’ which dictate that only those with large deposits get the cheap deals. Would-be buyers are thwarted as only those with large deposits get the cheap deals Frustration: Would-be buyers are thwarted as only those with large deposits get the cheap deals The high cost of a home has had a knock-on effect on the rental market as more and more people cannot afford to buy. A report from LSL Property Services, the country’s biggest chain of letting agents, said rents have reached an all-time high, with a typical tenant paying £705 a month. In London, the situation is even worse, with the average rent reaching more than £1,000. Rents are rising far faster than wages. The latest figures show the average pay rise is just 2 per cent, with research from analysts XpertHR suggesting there was little prospect of pay rises picking up for several months. Demand: The housing shortage is likely to push prices gently upwards Demand: The housing shortage is likely to push prices gently upwards David Newnes, of LSL, which owns the letting agents Your Move and Reeds Rains, said rents will keep on rising. He said: ‘Rents are on an upward trajectory. It is unlikely that tenants will gain respite any time soon. Demand from thousands of frustrated buyers each month is underpinning buoyant competition for rental homes, enabling landlords to increase prices.’ LSL said the situation had led to a new take on the ‘Bank of Mum and Dad’, whereby rather than lending offspring the deposit to buy their first home, parents were having to help their children with the deposit needed to rent a property. Read more: http://www.dailymail.co.uk/news/article-2027667/UK-house-prices-hit-time-high-2015-average-prices-climbing-14.html#ixzz1VRwDeVFw Actually, it's been a while since a prediction like this. Edited August 19, 2011 by Mr. Miyagi Quote Link to comment Share on other sites More sharing options...
othello Posted August 19, 2011 Share Posted August 19, 2011 Actually, it's been a while since a prediction like this. I started a similar topic in 2008 - their predictions are hilarious, but then look at who they are. CEBR antics Quote Link to comment Share on other sites More sharing options...
Chest Rockwell Posted August 19, 2011 Share Posted August 19, 2011 We're sorry but reader comments are currently unavailable. Quote Link to comment Share on other sites More sharing options...
uztopride Posted August 19, 2011 Share Posted August 19, 2011 Hyperinflation? Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted August 19, 2011 Share Posted August 19, 2011 Houses will be £2400K on average.. But then since the BoE is letting inflation rip, a loaf of bread will be £500. Quote Link to comment Share on other sites More sharing options...
papag Posted August 19, 2011 Share Posted August 19, 2011 Recent conversation Bankers Mr Mail we have 10 full page bank adverts to place in the next few weeks and looking maybe at your paper to be the benefactors,big money in it for you re advertising revenue but we need some good news on House prices maybe a editorial or front page piece on say house prices to rise say 15%, the Express are also interested but have lost all credibility lately, so are guys are you interested? Mr Mail You bet we are, what do we print and when? a good time would be the day after the next big fall in share prices and we can front page it then. Bankers Brilliant that will keep the sheeplike happy for a little while. Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted August 19, 2011 Share Posted August 19, 2011 “If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.” --- Joseph Goebbels About sums up where we are in this banana republic we call the UK. Quote Link to comment Share on other sites More sharing options...
Mr. Miyagi Posted August 19, 2011 Author Share Posted August 19, 2011 I started a similar topic in 2008 - their predictions are hilarious, but then look at who they are. CEBR antics Perhaps there should be a sticky thread with dubious predictions.Can any one remember the 'expert' who predicted houses would be 1million quid in the near future? Quote Link to comment Share on other sites More sharing options...
Mr. Miyagi Posted August 19, 2011 Author Share Posted August 19, 2011 (edited) . Edited August 19, 2011 by Mr. Miyagi Quote Link to comment Share on other sites More sharing options...
@contradevian Posted August 19, 2011 Share Posted August 19, 2011 He said: ‘Rents are on an upward trajectory. It is unlikely that tenants will gain respite any time soon. Demand from thousands of frustrated buyers each month is underpinning buoyant competition for rental homes, enabling landlords to increase prices.’ Better fill your boots lads. For some research on another thread yesterday, the rents in East London where I used to rent ten years ago, have risen just £20 per week, despite the biggest property bubble in history. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 19, 2011 Share Posted August 19, 2011 Bread to cost £100 a loaf by 2015 Quote Link to comment Share on other sites More sharing options...
Mr. Miyagi Posted August 19, 2011 Author Share Posted August 19, 2011 Better fill your boots lads. For some research on another thread yesterday, the rents in East London where I used to rent ten years ago, have risen just £20 per week, despite the biggest property bubble in history. My rent in 2005 - £475 My rent in 2011 - £485 Quote Link to comment Share on other sites More sharing options...
Roost Posted August 19, 2011 Share Posted August 19, 2011 My rent in 2005 - £475 My rent in 2011 - £485 Mine has remained unchanged @ £695 since 2006; although they do appear to be getting silly on Rightmove Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted August 19, 2011 Share Posted August 19, 2011 They mean "all-time lie" Quote Link to comment Share on other sites More sharing options...
tomandlu Posted August 19, 2011 Share Posted August 19, 2011 Recent conversation You do have to wonder how they can look at the current situation and say stuff like this with a straight face. FFS, where do they think anyone is going to get the money to pay more and more when we all have less and less? Even as a lie, it smacks of desperation. Quote Link to comment Share on other sites More sharing options...
Tonkers Posted August 19, 2011 Share Posted August 19, 2011 (edited) Hang on, I might be missing something here, but a below inflation rise is a loss, no? Morons. Respected by who? Edited August 19, 2011 by Tonkers Quote Link to comment Share on other sites More sharing options...
Redcellar Posted August 19, 2011 Share Posted August 19, 2011 I hope theyre right. I want loads of people to pile on in a very short span of time. Buy buy buy. Get those prices so high they reach into space. Because then the next drop will be unstoppable and so steep it will crash through the bottom that's been predicted. No government intererference could stop it. Right now we're on the edge of the cliff and little wooden fences have been erected to stop us falling. Climb a little higher you fools, and there won't be any fences. Go on, go for it, you know you want to. Great time to buy a little property, all time low interest rates that will last forever eh? Quote Link to comment Share on other sites More sharing options...
Badger Posted August 19, 2011 Share Posted August 19, 2011 (edited) My rent in 2004 - £650pcm. My rent in 2011 - £650pcm. Edit: I got a pay rise last week too after 3 months of waiting for an answer Edited August 19, 2011 by Badger Quote Link to comment Share on other sites More sharing options...
Gerinako Posted August 19, 2011 Share Posted August 19, 2011 (edited) http://www.cebr.com/?p=242 House prices will avoid a major double dip, but expect price growth to soften further next year. House prices will grow by around four per cent during 2010, and will continue to grow over the forecasting period. Those forecasters projecting a double dip have got it wrong. Erm....lol? Edited August 19, 2011 by Gerinako Quote Link to comment Share on other sites More sharing options...
Riedquat Posted August 19, 2011 Share Posted August 19, 2011 I hope theyre right. I want loads of people to pile on in a very short span of time. Buy buy buy. Get those prices so high they reach into space. Because then the next drop will be unstoppable and so steep it will crash through the bottom that's been predicted. No government intererference could stop it. Right now we're on the edge of the cliff and little wooden fences have been erected to stop us falling. Climb a little higher you fools, and there won't be any fences. Go on, go for it, you know you want to. Great time to buy a little property, all time low interest rates that will last forever eh? Fine in isolation, it's the collateral damage to everyone from destructive policy that bothers me. Whilst I'd love to see everyone cheering for high prices living in a cardboard box I don't want to get dragged down with them. Quote Link to comment Share on other sites More sharing options...
NEO72 Posted August 19, 2011 Share Posted August 19, 2011 Article from January 2007 A leading think tank says Britain's housing boom will continue in 2007, with average prices rising by more than £1,000 a month.The latest forecast from the Centre for Economics and Business Research says: 'Despite recent rate rises, house prices will continue to grow in 2007 and 2008, with annual house price inflation this year expected to hit 7.6 per cent.' Quote Link to comment Share on other sites More sharing options...
athom Posted August 19, 2011 Share Posted August 19, 2011 We're sorry but reader comments are currently unavailable.Read more: http://www.dailymail.co.uk/news/article-2027667/UK-house-prices-hit-time-high-2015-average-prices-climbing-14.html#ixzz1VSlGsFrV hmm, wonder why Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted August 19, 2011 Share Posted August 19, 2011 According to the ONS rents have risen 3.0% in the past year against a general rise in the RPI of 5.0%. Over the past four years rents have risen 9.7% vs an overall 13.9% rise in RPI. Quote Link to comment Share on other sites More sharing options...
profitofdoom Posted August 19, 2011 Share Posted August 19, 2011 They could well increase by 15% in the next four years.However compound inflation may amount to over 20%. Quote Link to comment Share on other sites More sharing options...
Tonkers Posted August 19, 2011 Share Posted August 19, 2011 CEBR Can't Execute Basic Rithmatics. Quote Link to comment Share on other sites More sharing options...
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