The Centre for Economics and Business Research has forecasted a suggestion that a typical house in the UK will cost £227,000 in
2014, beating the peak in two thousand and seven for the first time, according to The Independent.

The “CEBR” also predicts the average home price will be approximately £222,000 this year, 1.4 per cent higher than in 2012. They fully expect a typical UK home will cost £267,000 by 2018. In 2014, they estimate that the Government’s Help to Buy scheme could lead to an additional 4,800 homes being built but could well raise prices by up to 0.8 per cent without an notable impact on housing supply.

The CEBR Economist and main author of the report, Daniel Solomon said “By 2018, we expect the typical UK home will cost over 20% more than this year,” “Gradual wage and population increases will be the fundamental drivers of this medium-term trend. We expect the Chancellor’s new Help to Buy scheme will push up house prices before it raises housing supply. We predict that the scheme’s effects will be quite modest, but it could support the construction of roughly 5,000 new homes in 2015. This supply boost could provide a welcome route on to the housing ladder for a small number of aspiring homeowners”

Similarly, the Guardian has reported that the average price of a UK home is now £163,943, more than £35,000 below the peak price of £199,612 recorded by the index in August 2007, and less than £10,000 above the recent trough of £154,663 in April 2009.

Martin Ellis, Halifax housing economist said “Weak income growth and continuing below-trend economic growth are likely to remain significant constraints on housing demand during the remainder of this year,”. “Overall, we expect to see a modest increase in UK house prices during 2013.”

George Osborne’s intervention in the housing market in the budget with the Help to Buy scheme, which will offer help to first-time buyers and underwrite mortgages for homes worth up to £600,000 apparently did not dampen the mood of this news.

Nationwide reported no price growth in March, but put the average price of a UK home at a very similar figure to Halifax, their rivals, of £164,630. It said prices were up by just 0.8% year-on-year, but the lenders use different methodology for this figure, Nationwide compares that of a single month. whereas Halifax compares quarterly data.

Thankfully cheap property insurance prices are not affected by market valuations and rely purely on the physical rebuilding costs which do not fluctuate to any great extent. Properties that suffer from external perils such as subsidence, flood and/or an increased theft area often bear the brunt of significant increases however, insurancedealer can help to minimise these costs and can compare property insurance of almost any kind.