News In Focus
OBR sees 2013 housing rebound
The UK’s housing market faces another dismal 12 months in 2012 before experiencing a 20.7% surge in transactions during 2013-2014, according to the latest forecasts from the Office for Budget Responsibility (OBR). House prices, while not increasing at the same rate as transaction volumes, will nonetheless outpace inflation, predicts the OBR, hitting 4.5% in 2015-16.
Such a recovery would represent a marked reversal of the current trend, which showed a 2.4% year-on-year drop in volumes during October 2011, while sales for the full year are down almost 5%. This is backed up by the latest quarterly figures from the Bank of England, which reveal a £9.1bn drop in mortgage debt during Q2 2011.