The housing market will finally return to life this year with more than a million people expected to move home – the highest number since the financial crisis struck.
The Ernst & Young Item Club, which uses the Treasury’s economic models, predicted that housing transactions this year will rise by 7.5% to 1m. In its spring forecast the respected economic forecaster said the chancellor’s plan to use £12bn of taxpayer funds to underwrite up to £130bn of mortgages will push home moves up a further 7.8% next year to 1.08m.
House moves are also expected to be encouraged by falling mortgage costs due to the Bank of England’s Funding for Lending scheme.
Property prices are not expected to rise this year, but are predicted to increase 2.1% in 2014 and 5% in 2015.
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