House prices 'set for major price rise'

by Christopher Evans

House prices in the UK could be on course to increase rapidly when the market recovers, a member of the Bank of England's Monetary Policy Committee has said.

Kate Barker predicted that such a situation is likely because of the difficulty the construction industry will have in ensuring it meets the government's target to build 240,000 new homes each year until 2016.

She remarked: "When the housing industry was booming, we still only achieved 200,000 new homes in one year, which raises the prospect of prices rising sharply again in the future."

Ms Barker said that this would see more people getting on the property ladder later in life, meaning the rental property sector will have a larger role to play.

Those keen on expanding their property portfolio in readiness for such a future may wish to pick up a pack on managing a rental property portfolio.

More rental property investors were buying properties than selling them in the first three months of 2009, the first time in two years this has been the case, a recent survey by the Association of Residential Lettings Agents found.

Published on: April 30, 2009

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