Experts predict 10% rise in house prices

editorial image

House prices in the East Midlands will see an increase of ten percent over the course of next year while the cost of renting a home should rise by a further one percent.

That’s the forecast being made by the Royal Institute of Chartered Surveyors (RICS) as they run the rule over the housing market in 2014

And the RICS says that, along with the East of Engalnd and London, the East Midlands will see the biggest growth in house prices across the country.

Meanwhile, the North East and Northern Ireland will experience the lowest rises with prices increasing by five percent and four percent respectively.

Nationally, although significant challenges remain to achieving a sustainable economic recovery, 2014 may well see the pick-up in activity gather pace and this will be reflected in the housing market.

In addition to rising prices, the number of transactions should also see a further increase, moving up to 1.2m (from 1.05m in 2013).

With the shortage of homes coming onto the market a key factor behind the price rises, some comfort may be drawn from a likely twenty percent jump in new starts in England over the next year.

That would push the total towards the 155,000 mark compared to 125,000 this year and only around 100,000 in 2012.

While this is an encouraging trend, it is still insufficient to address the more rapid growth in population and will leave significant shortfalls in all tenures.