Prices 'will keep rising'
House prices will continue to rise for the foreseeable future according to independent research commissioned by Chesterton Humberts.
The house price forecast, based on the Centre of Economics and Business Research’s long-standing, independent house price forecasting models, claims that, while mortgage lending remains tight, conditions have improved substantially since the worst of the crisis and lending continues to edge upwards.
Base rates will remain at historic lows in 2010, according to the forecast, making mortgages relatively cheap, albeit with post-credit crunch loan-to-value rates and higher risk premiums.
With economic output having weakened considerably over the last year, the CEBR expects modest growth of 1.2 per cent in 2010.
Meanwhile, the supply side of the market will remain tight into the medium term.
Chesterton Humberts chief executive Robert Bartlett said: "The CEBR's research supports our belief that the property market will experience a fractured but sustainable recovery, with the London market continuing to increase more rapidly than other areas.?"
"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."
By Mike Goodman, City Correspondent, estateagencynews.co.uk
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