NHF: House prices will rise by 25 percent

The average house price in England will rise 25 per cent by 2013, according to a new report published today (July 28th) by the National Housing Federation.

The NHF, in a paper titled Home Truths, predict that despite fears of a property market crash the average house price will have increased to £274,700 in five years time, after a further fall of 2.1 per cent in 2009.

In addition, the report, researched by independent Oxford economists, revealed that while demand is growing the supply of new housing is falling - with only 75 per cent of the new homes currently required being built each year.

"Demand for housing is going up, while the supply of new homes is going down. This means that as soon as the economic outlook improves house prices will resume their previous upward trajectory," said the NHF's chief executive David Orr.

This comes as good news for homeowners, as they should expect to pay more to sell their property, as estate agents admit to raising their fees amid falling property prices.

House Prices News posted on 28/07/2008 14:32:34