CEBR raises homeowners hopes
The average house price in Britain will rise by a massive 25 per cent in five years, according to a report carried out by the Centre for Economics and Business Research.
This study is likely to raise the hopes of current homeowners across the UK, but it is advised that these reports be taken with a pinch of salt, as the report has come under fire from critics.
House prices across the country are said to rise 2.9 per cent to an average of £225,000 this year, followed by a 3.9 per cent rise in 2014. It has been reported by londonlovesbusiness.com that by 2018, the average UK house price will be up 23.7 per cent to an all time high of £278,000.
This rise in the cost of property could lead to many first time buyers opting to rent for longer as they would not be able to afford the mortgage payments.
Experts in real estate have said that a generation of young people are being stopped from entering the property ladder by the high costs of homeownership as a time when the average full-time salary is £26,500.
However, Daniel Soloman, a CEBR economist told the dailymail.co.uk that this is not a case of houses being built on the sand. The housing market recovery being witnessed is based on strong economic ground.
Mr Soloman said "Government support and an improving economic climate will provide an invigorating shot in the arm for the housing market over the coming years."