A report in today’s edition of The Telegraph, suggests that the UK housing market is recovering with prices on track to pass pre-crisis levels by next year.
The report says: A recovery in the UK property market is gathering pace, with house prices on track to surpass their pre-financial crisis peak for the first time and signs of improvement in the mortgage market, economists have disclosed.
The number of houses up for sale is also the highest since the start of the financial crisis, while the strength of the property pick-up should see house prices back to their 2008 levels by next year, say forecasters.
It comes amid rising optimism among house builders, with Barratt and Bovis recently reporting growth and the Royal Institution of Chartered Surveyors saying that the depressed housing market could soon be over the worst.
Average prices this year are expected to edge up to £219,000, marking a 0.8pc increase compared with 2012, according to the Centre for Economics and Business Research (CEBR). By 2014, a typical house in the UK will cost £223,000, a figure which is 0.7pc higher than the 2007 peak.
Daniel Solomon, CEBR economist, said: “Next year UK property prices will hit a significant milestone, passing their pre-crisis peak for the first time.”
The slow recovery will be welcome news to homeowners who bought around the peak of the market and have found themselves stuck with little or no equity in their home. The forecaster said that house price growth will accelerate in the coming years as the economy gradually picks up.