(MENAFN) British house prices will increase 5 percent this year and 4 percent in the next two years, accordingly, salaries will elevate faster than inflation, fixed at 0.2 percent this year, but will not equal house price rises until 2017.
Record low Interest rates at a of 0.5 percent since early 2009, along a severe shortage of homes for sale, coupled with a recovery in housing demand as the labor market continues to strengthen, are putting more pressure on house prices.
Moreover, the fact that mortgage approvals has raised in July to their highest level in 17 months, had a member at the Council of Mortgage Lenders stress that the gradual interest rate rises is unlikely to derail the housing market.
"London is now significantly above its previous peak and a large part of a generation is priced out of the market. Across the country, this is markedly less true," said a Building Value's independent consultant.
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