These days every almost economist appears to deserve the name ‘Dr Doom’ although many have been accurate in their predictions of the housing market.
The latest forecast for 2011 therefore comes from the Centre for Economics and Business Research – and ironically it is the most optimistic of the predictions released so far, including many covered here from within the housing industry itself.
CEBR says average prices will rise 2.2% in 2011 and will rise 16% in the next four years – enough, probably, to mean that bricks and mortar appreciation will be positive even after taking inflation into account.
“House prices may not move much during 2011 but they are likely to rise significantly in the following three years” says CEBR chief executive Douglas McWilliams (right).
Critically the consultancy believes mortgage approvals will rise – by as much as 50% on current levels – by 2015.
The CEBR says the Bank of England is “highly likely” to follow the US in introducing more quantitative easing, leading to a reduction in the cost of borrowing and an increase in mortgage lending as a result.
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