'Pretty decent' house price growth predicted

Those looking to sell their own home in the year ahead may be glad to know that one expert has predicted "pretty decent" price growth going forward.

Lucian Cook, director of Savills estate agent, said a period of prolonged low interest rates will limit price declines, as mortgage affordability will be high.

"If they do stay that low, it will give a springboard for house price growth when other conditions are right," he remarked.

Interest rates are currently at a record low of 0.5 per cent and have remained at this level since March 2009.

Mr Cook said that if these low borrowing costs coincide with a return to pre-recession economic output and improved lending conditions, then house prices could grow at a reasonably sustainable level.

According to the latest figures from Halifax, property values increased by 0.6 per cent in July compared to the previous month, bringing the average cost of a home in the UK to £167,425.

Posted by Christopher Evans

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Published on: August 5, 2010

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