House prices 'to rise 20% by 2014'

The forecast says prices will increase in the long term because of a fundamental under-supply of housing as only around 60% of the new homes required are being built each year. NHF also says more than 250,000 households are expected to form each year until 2026 which will add to housing demand. With these figures in mind, it predicts a slow recovery for the housing market with prices falling by 12.2% this year and a further 4.6% in 2010 before a stabilisation occurs in 2011 with a 1.1% rise. It then expects a three-year boom with annual growth of 7.5% in 2012, 8.4% in 2013 and 6.8%...