House prices expected to grow 8 per cent over a year
HOUSE prices in the UK will continue to rise in 2014 as the momentum gained over the last 12 months shows no signs of slowing down anytime soon. The Halifax Building Society predicts growth of up to eight per cent, a broadly similar pace to 2013, buoyed by the burgeoning economic recovery and low interest rates.
It also claims a housing bubble isn’t on the horizon after all, with several factors — including continuing pressures on household finances and the potential for more properties to come on to the market — set to limit the increase.
House prices jumped by seven per cent in the first 11 months of last year, according to Halifax’s housing market outlook report, while activity also picked up during the period. It is reported that the total number of transactions in 2013 is likely to exceed one million for the first time since 2007.
Martin Ellis, Halifax’s housing economist, claims a combination of higher demand and an insufficient rise in housing supply has led to the market performing stronger than originally thought at the start of the year.
“Overall, prices nationally are forecast to increase in a range of between four per cent and eight per cent next year,” he said. “Together with a predicted decline in unemployment, this should further boost consumer confidence.”