House price rise predicted

UK house prices will rise by two per cent between the fourth quarter of 2009 and the end of next year, it has been predicted.

The Centre for Economics and Business Research (cebr) has forecasted that prices will continue to dip until the final three months of this year, before the period of decline ends and is replaced with the start of growth.

It went on to suggest that there is likely to be further “modest” growth over the following two years, although it noted that there is a “potential upside” to this prediction based on a shortage of new homes due to the lack of construction during the credit crunch.

Such factors may interest those keen on taking out mortgages to buy homes soon.

Last week managing director of property portal FirstRungNow.com Helen Adams predicted that as long as the credit crunch lasts most first-time buyers will have to rely on their parents for the cash to raise a mortgage deposit.

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