HBoS ups growth forecast

property

savings provider gives upbeat assessment of housing market raising prediction from 8%-16%

HBoS has revised its house price growth forecast upwards from 8% to 16% as part of its bi-annual assessment of economic and housing market prospects. According to the mortgage and savings provider, high levels of employment and historically low interest rates have underpinned strong housing demand, which, together with supply shortages, have sustained high rates of house price inflation so far this year. However, the group does believe the housing market will slow in the second half of the year and into 2005 The cumulative effect of four quarter percentage point rises in interest rates ...