23 January 2013

Economists at the Centre for Economics and Business Research (CEBR) have tipped UK property prices to surpass the 2007 high by 2014. Their predictions are founded on signs of improvement in the market.

The average property price this year is set to reach £219,000, increasing by 0.8% in comparison with last year. The economists at CEBR have estimated that by 2014, the typical property in the UK will cost £223,000, marking a 0.7% increase from the 2007 peak.

CEBR also predicted that in five years' time the average house price will be £261,000, 19.1% more than this year.

Daniel Solomon, CEBR Economist, noted on MSN money that: "Next year, UK property prices will hit a significant milestone, passing their pre-crisis peak for the first time. This will be driven by fundamentals, such as a return to modest economic growth."

It’s not just CEBR that are seeing positive signs in the property market either. Experts have been pleasantly surprised at the resilience the UK housing market has shown during economically turbulent times. Surveyors and lenders also believe that property sales will increase his year and the Royal Institution of Chartered Surveyors (RICS) recently suggested that the property market could be over the worst of its problems.



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