Analyst Views on UK house prices: What will happen next in Britain’s soaring property market?

 

Despite this slight dip in house price growth in the last month, the overall trend shows an acceleration of house price increases, particularly in London. To nurse the market back to health, efforts need to be directed towards supporting house builders and ensuring that supply meets demand.

 

House prices look more likely than not to see increases over the coming months, although it is looking increasingly probable that there will be some easing back in house price gains from the recent strong increases. We expect house prices to increase by around four per cent over the second half of 2014.

 

The pace of increase is not slowing, but it has stabilised. Tighter regulations and the real chance of an interest rate hike this year have stabilised leading indicators and actual price inflation at current strong rates. We look for house prices to gain 10 per cent in 2014 and 10 per cent in 2015.