House prices expected to jump 8% before being hit by higher rates
Monday 02 June 1997
The number of housing transactions, set to increase by more than 10 per cent in England and Wales this year, will spark a big jump in house prices. The average UK house price is expected to rise by 8.4 per cent, twice as fast as last year's 4.2 per cent rise, according to the latest edition of "Regional Housing Market Prospects" from Cambridge Econometrics.
In East Anglia, the West and East Midlands, Yorkshire and Humberside, the North-west, the North and Wales, activity is expected to overtake London and the South, with increases in the number of transactions ranging from 11.2 per cent in the North-west to as much as 15.3 per cent in the North.
But while low mortgage rates in 1996 encouraged the current spate of activity, the anticipated rise in mortgage rates will hit the market next year, with all regions expected to show a sharp downturn in the number of houses sold or purchased.
London, the South-east and the South-west are forecast to show the steepest decline, with drops of over 3 per cent. While London's housing market is still bustling, there are already signs of a downturn. The number of transactions will go up only 10 per cent this year, compared with a massive 17 per cent in 1996.
Despite slowing activity, house prices will continue to rise next year, albeit at a less hectic rate. Prices throughout the UK will go up by an average of 7.3 per cent in 1998. This year and next, East Anglia and the South will experience the fastest acceleration in house-price inflation, but the growing numbers of buyers and sellers in Northern locations will not usher in commensurate inflation.
- 1 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 2 Oil tanker with $100 million cargo goes missing off Texas coast
- 3 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
- 4 Saudi Arabia executes 19 in one half of August in 'disturbing surge of beheadings'
- 5 Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
Lady al-Qa’ida: On the trail of Dr Aafia Siddiqui, the world’s most wanted prisoner
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
- < Previous
- Next >
iJobs Money & Business
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...
£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...