UK property market to enjoy growth

UK property investors will be pleased to learn that the country's housing market is expected to enjoy substantial growth over the next year and beyond.

The prediction was made by Ben Wilkie, editor of What Mortgage, who is confident that price increases will occur now the general election has finished.

Mr Wilkie added that if the Bank of England base rate remains at 0.5 per cent, new homeowners are likely to be encouraged to enter the market.

"It very much depends on what happens after the election," he explained.

"If there are heavy cuts ... then I think the market will contract a little bit, but I think generally we are on an upward trend."

According to the Centre for Economics and Business Research, house values are expected to rise by 5.3 per cent in 2010, 3.4 per cent in 2011 and nine per cent during 2012.

In addition, CEBR claims that low mortgage rates and the slow rate of house building are helping to ensure that affordability remains favourable.

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