UK house prices set to rise 25% by 2013
The National Housing Federation has released a report that says that UK house prices are set to rise 25% by 2013. The report sees prices falling 4.4% in 2008, then by another 2.1% in 2009, a slight recovery in 2010 and rising to over 9% in 2012 and 2013 respectively.
People living longer, delaying marriages and an increase of couples getting divorced have all contributed to the rise in demand for homes. Although there are concerns over how accurate the forecast can be, there is a worry that new homes that are being built will not meet the demand.
A number of analysts have suggested that the 4.4% price fall for this year is optimistic and that prices will fall by at least 7% in 2008, many more believe it will be far higher than 7%.