Economists predict 10% house price inflation for next two years


House prices are expected to rise by 10% this year and in 2015 due to a loosening of credit conditions.

Rob Wood, chief UK economist at Berenberg, said tighter lending conditions were a good thing given the dangers that could result from house price inflation accelerating even further.

Banks' intentions to cut back on mortgage approvals, highlighted in last week's Credit Conditions survey, would mean there was less need for the Bank to step in and tighten lending standards to calm the housing market.

Read the full article here on Mortgage Solutions

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