CEBR push house price growth forecast up

The Centre for Economics and Business Research has revised this years house price growth forecast,  from 1.5 per cent to 4.7 per cent.

The think tank put's its changed forecast down to the “chronic lack of properties being put up for sale”.

The CEBR say the number of new houses being built is continuing to fall short of demand.

They have also revised their house prices growth forecasts for 2016 to 3.4 per cent, and 2017 to 4.4 per cent.

CEBR's economist, Nina Skero,  commented, 

“With the possibility of higher taxation on prime property and intervention in the rental market less likely, the Conservative Party’s victory in the General Election will likely support stronger price growth in the second half of 2015.

“Prices will also see a boost from the lack of fresh properties coming on the market.

“In London, average house prices are being weighed down by the prime end of the market. A strong pound which makes London property less affordable for foreign buyers and December’s decision to increase stamp duty on properties valued above £1.1m are both deterring some prospective buyers.”

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