October 01, 2013
House Prices To Rise by 2018
The Centre for Economics and Business Research (CEBR) has forecast that house prices across the country will rise 2.9% to an average of £225,000 this year, followed by a 3.9% rise in 2014. Between now and 2018 the average UK price will jump 23.7% to a record of £278,000. In London, house prices will leap 43.5% by 2018, pushing average values in the capital up to £566,000. CEBR economist Daniel Solomon said the Government's Help to Buy scheme had provided a "shot in the arm" to the market. But he insisted that talk of a house price bubble was "premature" and that a housing shortage was a bigger factor. Howard Archer of IHS Global Insight takes a more positive view of prices and forecasts that they will rise by 7% next year.