House prices 'to increase 40% in next decade'
House prices in the UK will increase by 40% in the next decade, according to the latest predictions from Savills.
This is drop on the phenomenal levels of growth in the noughties, but a huge increase on the -14% growth recorded in the 1990s.
The research found that the past ten years revealed an emerging divide between the higher and lower levels of the market and shift towards the construction of multiple occupancy buildings. It predicted that the biggest risk to property in the coming years would be from the availability of mortgages.
Stuart Law, chief executive of investment firm Assetz, told the Daily Express: "We would expect prices to increase by up to six per cent per annum over the next decade. Continued and extreme housing shortages versus high demand give us confidence that growth will continue over the coming 10 years."
The figures from Savills are based on growth of around 3.4 per cent per annum.
Mortgageforce recently predicted that better mortgage opportunities would start appearing on the market this year, including improvements in loan-to-value rates and 90% mortgage deals.
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