House Prices To Beat Inflation By 40% In Decade

06/01/2010

Inflation-beating house price growth will continue to be a feature of the coming decade, though at a lower rate than seen over the past ten years, according to new analysis.

The report indicates that demand will be sustained by stock shortages, but price growth will be constrained by more limited access to mortgage finance. It forecasts 40% inflation-adjusted growth in the mainstream market over the next ten years, much more in line with the long term average.

This follows inflation-adjusted changes of +71% in the Noughties, a fall of -14% in the 1990s, and +43% and +49% growth in the 1980s and 1970’s.

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