House prices rise due to shortage of homes

House prices could rise by as much as 5.6% this year, predicts the Centre for Economics and Business Research (CEBR).

New reports have proposed that a significant lack of homes being put up for sale will elevate prices on the housing market.

The CEBR stated that widening price gaps between different types of houses were creating a tougher property ladder for people to climb.

The price divide between a London flat and a terraced home, for example, has almost quadrupled – the same price gap between two such properties stood at £46,000 in 2000, compared to £176,000 in 2014.

house for sale

September saw mortgage approvals reach a four-month low, with 44,489 applications approved – down 4.5% compared to the previous month.

However, mortgage approvals in September were still 14% higher compared to the same period last year, data from the leading banks has revealed.

This rise occurred partially due to first-time home buyers acquiring a ‘good deal’, reported the British Bankers’ Association (BBA).

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s