House prices forecast to be 27% up by 2018

Alex Johnson

c6c6f300abc4a652f4e61d46a5a57b785fbde767 300x199 House prices forecast to be 27% up by 2018The Centre for Economics and Business Research estimates that house prices will grow 2.9%  in 2013 so that the typical UK home will cost a record high of £225,000.

Its report then goes on to say that it believes talk of a house price bubble is premature  and that it expects the rise in prices will extend outside London and the South East to the point that Scotland and East of England house prices will jump by 27.5% and 27.6% respectively by 2018.

Daniel Solomon, Cebr Economist and main author of the report, said: “Government support and an improving economic climate will provide an invigorating shot in the arm for the housing market over the coming years. This is not a case of houses being built on the sand. The housing market recovery we are seeing rests on firm economic and demographic foundations, at least for now. Talk of a house price bubble is premature. Northern Irish house prices have recently posted their first annual gain in years and the housing market recovery is finally moving beyond London and the South East. This should make home owners up and down the country feel that bit wealthier, supporting consumer confidence.”

Straw bale housing
Four affordable ‘straw bale’ homes have been officially opened in High Ongar, Essex, the first development of straw bale housing built in Britain by a housing association.

Two 2-bedroom and two 3-bedroom houses have been developed by Hastoe Housing Association at Millfield in partnership with Epping Forest District Council and the houses have been let at affordable rents to families on the council’s housing register. The properties were designed by architects Parsons + Whittley and built by DCH, a local contractor based in Coggeshall. The straw bales used were a sustainable by-product of farming and the bales were sourced from a local farm, Williams Brothers.

Houses built using straw bales need very little conventional heating because of their high insulating properties. They also have a negligible carbon footprint.

Outstanding interest only mortgages put oldest old at risk, claims report
One in three people over 70 with mortgages have interest only mortgage with no linked investment while 13% of older people with mortgages are struggling to make repayments on their home, according to new research by The Personal Finance Research Centre at the University of Bristol and think-tank the International Longevity Centre.

The report shows that while people over the age of 50 are generally less likely to have a mortgage, nearly one in ten of households headed by someone in their late 60s still have mortgages to repay.

Nearly a quarter of mortgaged households headed by someone over 75owed the equivalent of 25% or more of the value of their home and 5% owed more than 50%.

Moreover, four in ten of the oldest mortgaged households have at least one interest-only mortgage without a linked investment to repay the loan, compared with 6% among the under 55s.

Andrea Finney of the PFRC at University of Bristol said: “Home ownership is common among the over 50s, but these new findings highlight a core of households whose mortgages have persisted into older age. It is surprising to see such high loan-to-value ratios among mortgaged households headed by someone in their late 60s for example. Other assets only go part way to explaining this, raising important questions about the financial security of these households’ as they approach later life.”

Grand Design’s water tower for sale
As long as you don’t mind not getting much changes from £5 million, here’s your chance to snap up what’s being marketed as the only water tower in London’s Zone 1. As featured on Grand Designs, the Grade II listed five bedroom home in George Mathers Road, London SE11 is around 150 years old and has been converted to give 360° views over London from the top floor (previously the actual water tank). The rooms are arranged over nine floors. It has its own lift. On with Hamptions International for £4,750,000.

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