CEBR predicts house price rise this year

The average price of houses across the UK is predicted to rise by more than six per cent this year, according to the Centre for Economic and Business Research.

It claims that by 2014, prices are likely to have risen by 20 per cent compared to those on today's market – potentially limiting the availability of cheap mortgage rates.

Helen Adams, managing director of FirstRungNow.com, said she was disappointed that, although prices are going up, mortgage lenders have "yet to come up with much of an offering for first time buyers".

However, she predicted that the market may still level out over the next few years, largely due to social and economic factors.

"I think given job losses and the fact that people are still going to be prudent, we might not see enough spending to sustain it."

She also expressed doubts over the likelihood of house prices reaching levels of 20 per cent in four years time.

"I can't see them rising as much as that. Some conditions are going to get better as well as worse and will fluctuate. But we may well see a surge after the election," Ms Adams said.

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2010-02-03 13:11:02 © Moneyextra.com