Consultancy expects increase in house prices

As most homeowners are aware house prices in England and Wales have been falling for a number of months now, and house prices are currently said to be at the same level as they were in August 2006, with industry officials expecting further falls over the remainder of this year and the course of next year.

However, officials from one consultancy, The Centre for Economics and Business Research, have said that there could be a turnaround in house prices towards the middle of next year. The consultancy has said that house prices could start to rise again in the middle of 2009.

This prediction is likely to provide relief to the many homeowners who have been fearful of falling into negative equity if property prices continue to fall at the current level, and this is where the homeowners owes more on their property than the property is actually worth.

The Centre for Economics and Business Research has also said that some areas could see average house prices rise by around £50,000 by 2012 in England and Wales. Officials said that the predicted rise in house prices was being driven by a shortage of new homes throughout these areas.