Residential conveyancing news: House prices could rise by five per cent

Posted 25/01/2011

People thinking of employing the services of a residential conveyancing solicitor soon may be interested to hear that house prices could rise by as much as five per cent this year.

According to new research from investment firm Assetz, property indices suggest the value of a home could go up by as much as £10,000 as a result of low interest rates, higher rents and a shortage of available houses going on to the market.

The figures – compiled using data from Halifax, Nationwide, RightMove, CLG House Price Index and LSL Acadametrics – mean that the average cost of a home could reach past £200,000.

Stuart Law, chief executive of Assetz, said he does not expect a double-dip situation for the property market, even though house prices may pull back slightly in the first few months of 2011.

“As positive forces continue to outweigh the negatives we forecast house price growth of five per cent for 2011,” he concluded.

This contrasts with a report from the Royal Institution of Chartered Surveyors last month, which predicted the cost of a home will drop by at least two per cent and perhaps up to five per cent in 2011.

Anyone unsure about buying or selling a property should speak to an expert residential conveyancing solicitor.