Report says house prices will soar again

There is no cause for concern about the long-term state of the housing market, according to a report published by the National Housing Federation.

The NHF report suggests that house prices will continue to fall throughout 2009. However, they should recover in 2010 and increase rapidly in 2011. By 2013, the NHF expects house prices to rise by a quarter.

David Orr, chief executive at the National Housing Federation, said: “Our report shows that despite concerns about the current housing market downturn, house prices will increase substantially over the mid to long term.

“Demand for housing is going up, while the supply of new homes is going down. This means that as soon as the economic outlook improves, house prices will resume their previous upward trajectory.”

According to Mr Orr, the fact that there are more households in the UK will also help house prices recover: “People are living longer, they’re delaying getting married and they’re more likely to get divorced.”

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