CITY VIEWS: DO YOU AGREE HOUSE PRICES WILL RISE BY AS MUCH AS 40 PER CENT OVER THE NEXT FIVE YEARS?
PATRICK EGAN NORTH SQUARE CAPITAL
“I think that is very unlikely. Constraints on credit will be with us for at least three years yet, and we’ll also have an inflationary period within that time where interest rates will be raised and will dampen any exuberance in the housing market.”
JON MITCHELL FIDELITY“Five years is a long time, but that sounds wildly optimistic – I don’t believe there is that much money or demand out there. I’d say house prices will rise by 20-25 per cent within five years, but there is certainly potential for another financial shock.”
TOBY SMART TGP PRODUCTIONS
“Knight Frank are perhaps hoping this will be a self-fulfilling prophecy and lead to more confidence in the housing market. I do believe house prices, like any commodity, will rise again, but probably by nearer to 25 per cent in the next five years.”