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2005 housing forecast

Series: Nationwide Press Release ; 30 November 2004 (5)Publication details: 2004Subject(s): Summary: According to the "Nationwide forecast 2005", the price of an average UK property is forecast to rise just 2% in 2005. The forecast for 2004 was originally 9%, then it was revised to 15% and the expectation is that 2004 will end up at around 13-14%. The interest rate increases over the last few months have acted as a brake on prices and more realistic price expectations are expected to continue this trend. The Nationwide also forecasts that interest rates will rise again - but will not go much beyond 5%. As a result they expect initial mortgage payments as a percentage of take home pay growth to rise from 24% in November 2003 to 31% by the end of 2005. For the complete forecast go to the website. http://www.nationwide.co.uk
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News article London News article WB4046-05 (Browse shelf(Opens below)) 1 Available 128177-1001

According to the "Nationwide forecast 2005", the price of an average UK property is forecast to rise just 2% in 2005. The forecast for 2004 was originally 9%, then it was revised to 15% and the expectation is that 2004 will end up at around 13-14%. The interest rate increases over the last few months have acted as a brake on prices and more realistic price expectations are expected to continue this trend. The Nationwide also forecasts that interest rates will rise again - but will not go much beyond 5%. As a result they expect initial mortgage payments as a percentage of take home pay growth to rise from 24% in November 2003 to 31% by the end of 2005. For the complete forecast go to the website. http://www.nationwide.co.uk