CEBR: house values will rise

House prices will rise by nearly a sixth by 2015, according to the Centre for Economics and Business Research (CEBR). It forecast a 14 per cent rise by the middle of the decade with the depressed rate of housebuilding leading to an increasing shortage of accommodation. The level of home ownership is currently 68 per cent, compared to 71 per cent in 2000. Shehan Mohamed, CEBR economist, said an average of 110,000 homes will be built each year, but 225,000 are needed annually to meet changes in the UK population and social make-up. Douglas McWilliams, CEBR chief executive, said that while a return to the housing boom is unlikely, shortages could “push prices gently upwards”.