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Substantial House Price Growth Expected in UK
There is expected to be a significant rise in the cost of buying a house in the UK over the next decade, according to one expert.
Speaking at the Landlord & Letting Show in Birmingham, rental expert Ed Harris said it is realistic to expect strong house price growth over the next ten years, with analysts' predictions agreeing with this.
He elaborated: "I think there is a fair chance that they will rise substantially - I can't put a figure on it, but I think it is a fair bet that they will rise substantially because of the demand situation. That is going to drive it. We need a million homes a year just to stand still."
Mr Harris said that many people are "very pessimistic" at the moment and there is not much confidence in the economy but it is important to "look forwards", as prices have risen historically and this is very likely to occur again.
The expert said there is a "very good chance" that the economic indicators, including inflation across the UK as a whole, will push things forward, with "substantial growth" over the ten-year timeframe.
In Knight Frank/Markit's House Price Sentiment Index, the organisations highlighted that borrowers are showing more confidence in house prices after the Bank of England hinted that the rate rise is now off the agenda.
