House Prices Nearing 2007 Peak
Figues released from Nationwide today show that house prices are just 9.5% short of their 2007 peak. Prices have climbed by 12.2% since February last year, despite the recession, driven by record low levels of interest and a shortage of property available.For the outlook for 2010, economists are generally sceptical that prices will rise much further, with most seeing prices remaining flat for the rest of the year. However, any large changes in the rate of CGT in the budget this month, could see a a flood of 2nd homes hit the market if people want to cash in their gains, which would obviously affect prices.
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