Leeds property news: House prices ‘set to rise’

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National estate agents Chesterton Humberts is forecasting that national house prices will rise by up to 8.2 per cent in 2014.

The forecast comes following recent speculation that the Bank of England will leave interest rates unchanged throughout the whole of 2014.

In Greater London, a rise of 8.1 per cent rise is predicted.

However, Chesterton Humberts does not think there will be a property bubble in the short term due to various Government and Bank of England initiatives which will ensure that affordability remains manageable.

The property firm is predicting that national house prices will average six per cent per annum growth over the next five years with a total growth of almost 30 per cent but believes that this growth will be sustained until at least 2016 by mortgage support schemes which prop up 
the lending market by allowing cheap mortgage credit and enabling more people to buy.

House prices in the final three months of 2013 were 1.9 per cent higher than in the previous quarter of the year, according to the Halifax.

“Mounting signs that the economic recovery is becoming firmly established, together with a predicted decline in unemployment, should further boost consumer confidence over the coming months. This will increase the likelihood that more people will consider buying a property in 2014, therefore supporting housing demand,” says Halifax economist Martin Ellis, who added a note of caution: “Nonetheless, continuing pressures on household finances, as earnings again fail to keep pace with consumer price inflation, are expected to constrain demand.”

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