Monday, February 1, 2010
House-purchasing power of Â£ to fall 20%
A massive shortfall in housing completions will push house prices 20% higher by the end of 2013, the Centre for Economics and Business Research (CEBR) predicts. While the group anticipates a 20% rise in prices by the end of 2013, it expects house price growth to falter during 2011 as public sector cutbacks and increases in unemployment take their toll. Ben Read, managing economist at the think tank, said: â€˜We envisage a tough 2011 with house prices levelling out as government action to cut the deficit puts the brakes on demand. However, supply side pressures will reassert themselves in the medium term due to the massive shortfall in housing completions seen over the past two years and likely continued weakness in new housebuilding in the years to come.