Lucian Cook talks about the key report findings as well as an in-depth discussion around the change in ownership, buy-to-let, the current market and forecasts for London and the country.
"As more mortgage buyers come back to the market and interest rates rise, that will slow the pace of house price growth."
The State of the Market
Following a rapid recovery the market is currently seeing rates of growth around 10 per cent thanks to low interest rates and pent up demand from previous years. This has resulted in growth unsustainably outstripping rises in earning, but rises in interest rates will bring the market back in line with earnings.
Home ownership levels
Levels of home ownership have changed for different age groups, with significant drops among the youngest generations coupled with a rise for the over 65s. Should the older generation be encouraged to downsize to help their children get onto the housing ladder and how can this be done?
Forecasting the next 5 years
We expect to see a growth of 25% over the next five years but it's unclear at what point in the next few years that we will see the stages of this rise. The market is likely to cool down in the future thanks to rising interest rates, although we would also expect to see some policy response from the Government, but of course that will depend on who wins the upcoming general election.
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