UK house prices to pass pre-crisis peak in 2014

 

New Cebr forecasts show that a typical house in the UK is expected to cost £223,000 in 2014, surpassing the 2007 pre-crisis peak for the first time.

 

Next year, the leading economic forecaster expects house prices to be 0.7% higher than in 2007.

 

Cebr also predicts the average home price will be £219,000 this year, 0.8% higher than in 2012.

 

Daniel Solomon, Cebr Economist and main author of the report, said: ‘Next year, UK property prices will hit a significant milestone, passing their pre-crisis peak for the first time.’

 

‘This will be driven by fundamentals, such as a return to modest economic growth and restricted housing supply increases.’

 

‘Policy tools, such as further quantitative easing and the Funding for Lending Scheme, could also support house prices through their positive effects on the mortgage market.’

 

Download report (below) for further analysis.