House prices to rise by 25% by 2013

A new report has claimed that house prices will rise as much as 25% over the next five years

Country Life reveals that The National Housing Federation has issued a report which predicts house prices will rise to reach £274,700 in the next five years. The research, carried out by Oxford Economics, estimates that prices will fall in 2009, start to recover in 2010 and rapidly increase from 2011 rising over 9% in 2012 and 2013.

These rises are said to be caused by a lack of housing supply, as demand for social housing grows and more households are formed each year. The National Housing Federation says this research proves that it's critical the Government continues to invest in new social houseing, as one in every 13 households is now registered as being in need of an affordable home.

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