From This is Money:
It says prices will rise 2% next year and 3.5% in 2011.
A further 3% to 5% fall in prices could hit the market but the ‘chronic undersupply’ of housing and a predicted pick-up in mortgage lending in 2010 will prevent prices falling much further, the CEBR says.
Benjamin Williamson, one of the authors of the Consumer and Housing Prospects report, said: ‘In the UK the concentration of people on this tiny island and shortage of supply of houses has created a house price floor which house prices won’t go below.’
‘We have always maintained that a shortage of housing supply in the UK will maintain a floor for prices.’
Williamson said this level would be enough to support modestly rising house prices, despite suggestions that if the pool of cash-rich buyers dries up or the low supply of property coming on to the market increases, the current revival will come to a halt.
While the CEBR suggests end of year property prices will rise steadily from next year, based on the Halif…