Average house price to hit £266k by 2015

After several years in the doldrums, the property market is continuing its recovery, with experts predicting that the average home will be worth £266,708 by the end of 2014.

Average property to cost £266,000 by 2015

Pic: Getty

Growing consumer confidence is boosting the housing market and it is thought that property values will increase by three per cent this year, with another 7 per cent rise throughout 2014.

According to the Office for National Statistics, prices rose again in June, the fourth consecutive month to have seen an increase, and values are increasing at the fastest rate since the market was at its peak in 2006.

The average home currently costs £242,000, and this rapid rate of recovery has prompted a more positive estimation by insiders.

Further boosting the housing market is a price war by mortgage lenders, some of whom are now offering bargain deals, and even first-time buyers are venturing back into the property world, with the number of first home buyers at its highest level since 2007.

Howard Archer, chief UK economist at IHS Global Insight, told the Daily Express: "It is looking ever more likely that house prices will see marked increases over the rest of 2013 and during 2014.

"Housing market activity is up appreciably, supported by strengthening consumer confidence and elevated employment, and fuelled by the Funding for Lending Scheme and the Help to Buy initiative.

"On top of this, the Bank of England has now indicated interest rates are unlikely to rise before mid-2016, which seems likely to give many people greater confidence in their ability to purchase a house."

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