Region’s house prices ‘to rise’

House prices in Yorkshire are set to rise by a cumulative 18 per cent between now and the end of 2016, according to the latest research by BNP Paribas Real Estate.

David Couch, BNP Paribas Real Estate’s head of residential in the North, said: “Overall, the forecasts for the five-year period to 2016 show Yorkshire will be the strongest Northern region with average annual growth of 3.4 per cent.

“This compares to 3.0 per cent in the North East and 2.6 per cent in the North West. Over the 10-year period to 2016, Yorkshire will see cumulative price growth of 16 per cent, compared to 10 per cent in the North East and 9 per cent in the North West.

“The delivery of the future house price growth over the next five years will be heavily reliant on buyers being able to fund house price purchases through increased mortgage availability. Looking ahead, 2013 should see more development opportunities come to the market, as landowners adopt a more realistic approach to value and housebuilders seek to build up sites, in anticipation of market improvements.”

BNP Paribas Real Estate’s predictions are published in its annual Housing & The Economy report, put together with Professor Patrick Minford, a former economics adviser to Margaret Thatcher and the current Professor of Economics at Cardiff Business School.