North West house prices predicted to rise by seven per cent

St Helens Star: High demand but low supply pushes up the price of a home High demand but low supply pushes up the price of a home

HOUSE prices in the North West are set to rise by seven per cent next year and the cost of renting one is likely to increase by two per cent.

The Royal Institution of Chartered Surveyors forecasts the cost of buying a home will increase by eight per cent throughout the country, a change caused by high demand and low supply.

Peter Bolton King, RICS Global Residential Director, said: “The cost of a house is now picking-up right across the country and next year should see more of the same. We expect all areas of the country to see prices increase with London, predictably, recording the biggest rises. The improving economic picture aside, this is largely down to the fact that buyer numbers considerably outweigh the amount of homes on the market.

“While the number of new homes being built is now on the rise, it still won’t be anywhere near enough to meet demand and we expect the problem of insufficient housing stock to be the main driver behind price increases over the next 12 months.

“Some comfort may be drawn from a likely 20 per cent jump in new starts in England over the next year. That would push the total of new builds to 155,000, compared to 125,000 this year and only around 100,000 in 2012.”

Experts say this is an encouraging trend but still insufficient to address the more rapid growth in population and will leave significant shortfalls.

The biggest increases are expected in London at 11 per cent with the East of England and East Midlands next highest on 10 per cent.The North West, South East, South West, Wales, West Midlands and Yorkshire/Humberside are grouped together on seven per cent while the North East is likely to experience a five per cent price increase and four per cent in Northern Ireland.

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