HOUSE PRICES TO RISE BY ONE THIRD
November 07, 2001
PROPERTY prices across Berkshire are set to rise by an average of 32.9 per cent over the next five years.
That's according to a survey by independent data analysts Prophit, using historic property prices from the Land Registry and unemployment, population shifts and interest rate forecasts.
Property prices in the Wokingham area are predicted to rise by 34.5 per cent — the biggest increase — compared to 31.7 per cent in Windsor and Maidenhead.
Berkshire is expected to perform marginally better than the projected increases for the South East as a whole, where property prices are set to rise by 32.2 per cent.
The survey was prepared for and published in Your Mortgage magazine, a monthly independent consumer guide to home- buying. Andrew Stuart, editor-in-chief, said the results were good news for the property market.
He said: "These latest house price figures for Berkshire reflect a projected slowdown across the property market.
"This is good news for the market in general because it indicates property values won't suddenly crash as they did the last time in the late Eighties.
"Also, first-time buyers and public sector workers might finally be able to get on the first rung of the property ladder."
Peter Coles, managing director of Wokingham-based Romans Property Services, said: "It's reasonably good news for us and certainly good news for the buying public because it means the market is going to be stable.
"Contrary to popular belief, estate agents don't find it particularly easy to operate in a market where prices are fluctuating tremendously.
"It should be good for consumers and existing homeowners as long as Sir Eddie George (governor of the Bank of England) keeps inflation below his predicted targets.
"From an affordable point of view, it's also good news. At the moment, it's the lowest (interest rate) for years — with fixed-rate mortgages available at around four per cent."
Mr Coles added that property values could rise by £1,000 per month over the next five years.