According to a news published recently on a number of leading property portals and news sites, House prices will continue to rise in the neat future. The property market in general has been showing slow but steady signs of recovery. The latest news reiterates that the price rise is likely to continue for the foreseeable future. The finding is based on a recent independent research commissioned by Chesterton Humberts.
The house price forecast is based on the popular and widely used house price forecasting models by the Centre of Economics and Business Research. The research claims that mortgage lending remains strict although all in all the conditions have improved substantially since the peak of the the current economic crisis. Lending in general is also continuing its upward trend.
The research also offers a number or other indicators for the property market in UK. According to the study, base rates will remain at historic lows in 2010. This in turn is likely to make mortgages relatively cheaper.
As the overall economic output within the UK economy has weakened significantly over the last year, the CEBR expects that will be a modest growth of 1.2 per cent in 2010.
In the meantime, the supply side of the property market will remain strict into the medium term.
The CEO of the company has stated that this research supports the general belief among people that the property market in UK is likely to witness a fractured but sustainable recovery and that London market will continue to increase at a higher rate than other areas of the UK.
“For those living in areas of relatively stable employment, many now have considerably greater disposable income than just a year ago, and are now taking advantage of the historically low mortgage rates to secure their housing needs.”