NHF forecasts long-term growth in housing market

Posted 04/08/2009

The housing market in England has been tipped to show signs of recovery within the next two years.

According to the National Housing Federation (NHF), property values will continue to decline in 2010 before increasing slightly in 2011.

The organisation believes a 1.1 per cent rise in house prices in 2011 will be followed by a 7.5 increase during the subsequent year, followed by growth of 8.4 per cent in 2013.

David Orr, chief executive of the NHF, attributed this increase to a “fundamental” under-supply of available housing stock.

He added that the number of people looking to make a property purchase will still be inhibited by various factors, such as restrictions on mortgage lending.

“Until lending is freed up, young and lower income households without access to large deposits will be locked out of the market,” Mr Orr commented.

According to recent figures from the British Bankers’ Association, the number of mortgage approvals rose by 9.4 per cent during June 2009.