Great news for home owners and Daily Mail headline writers. Not so promising for those who haven’t already got their foot on the housing ladder. UK house prices are expected to rise over the summer, with the highest consumer confidence in a decade and a half.
Over the next year it is expected that house prices will rise on average 1.5 per cent. On this trajectory, a house worth £400,000 will be valued at £406,000 this time next year. This is all according to consumer confidence studies by the Royal Institute of Chartered Surveyors, viewed as one of the most reliable predictors of future trends in the housing market.
In most parts of the country rents are increasing above inflation, and good rates on mortgages means we’re seeing a race to the bottom for houses in many parts of the South East. People know at the current rates, and with positive forecasts, buy to let mortgages present a great investment at a time of grave housing shortages.
In particular parts of London are seeing a frantic debate around the housing market, with politicians stuck between the interests of current residents, buy to let landlords and property developers, most of whose interests clash with one another.
If anything, the rise in house prices is likely to lead to greater instability down the line as the housing crisis deepens, and people’s finances are wrecked by the burden of rent.