HOUSE PRICES in some regions are set to carry on rising, a leading property expert has predicted.
Despite concerns over the economic downturn, Jonathan Rolande said there are signs many parts of the UK could still record increases of up to 5% right through until next year,
Mr Rolande, a spokesman for the National Association of Property Buyers, said: “Rising interest rates, inflation, a cost of living crisis and a drastic cut in mortgage cuts are a perfect storm of factors which, during any other time, might have led to a house price crash.
“Yet in reality prices are actually holding firm. And in many parts of the UK, especially in the north and in regions of the Midlands, prices are still going up.
“The lack of supply in the market is driving this. So too is a crisis in the rental sector. Many people can’t afford to enter into rental contracts so are instead saving up and putting all their attention into trying to buy which in turn puts sellers in a strong position.
“We estimate there will be rises of around 5% over the next six months.”
Mr Rolande said there were also clear differences between now and the 1990s when prices crashed.
“Right now there is still money available to borrow, in 2008 there was not. Rates at 6% are more expensive, but still nowhere near previous highs of 10% and more in the 1990’s crash.
“Also commentators talking about slowdowns are not seeing the bigger picture. In the past few years we’ve had double digit rises month after month in the housing market.
“This is not sustainable and had to end at some point. Smaller rises in property prices will boost the chances of those desperate to get on the housing ladder, especially if it’s matched by Government policy to support first time buyers.
“We’d urge Ministers to look again at their Stamp Duty policy and think about targeting it towards the older property owners who might be tempted to sell up and downsize, thus creating additional supply in a crowded market.”
