House prices to rise for four more years

26 August 2004
Sanity is set to return to the housing market, but prices will keep increasing over the next four-and-a-half years, new figures show.

The forecasts come from the magazine Your Mortgage, a monthly independent consumer guide to the home buying process.

The predictions for average house price changes in local authorities in England suggest that the vast majority of the country will see rises of between ten and 16 per cent to the end of 2008.

Although the biggest rises are expected in the north east and north west, this will be due to the process of these areas catching up with the south east of the country.

"Overall, the forecasts are pretty much in line with general inflation and possibly less than the expected rise in average wage inflation to the end of 2008," said Your Mortgage editor in chief Andrew Stuart.

He added: "Our forecasters believe that house price inflation will cool off across the country over the next five years, with small falls in some areas during the second half of 2004."

But he concluded: "By the end of 2008 prices throughout the whole of England will increase compared to where they are now which confounds those pundits who have predicted a crash."
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