Central London housing prices are up; UK prices to cool down next year
The Times Online reports that home prices in Central London are up 26% from last year. This is the “biggest surge since the property market peaked in the late 1980s.…” However, the drop in mortgage debt among young buyers is evidence that it is becoming harder for them to afford homes. Home prices are outpacing income. UK home prices are up 13% to an average of £221,751. UK bank HBOS predicts that “despite a price increase of 9 per cent over this year, ... that house-price inflation would ease to 4 per cent in 2007 as interest rates started to bite.”
