28
Jan
Sentance predicts house prices will bounce back
Andrew Sentence, a member of the Monetary Policy Committee (MPC),
has commented that he believes house prices will recover relative
to inflation following the recession.
He made the comments at the British Property Federation Conference
in London on January 26th, City Wire reported.
The news provider quoted Mr Sentance as saying: "In terms of the
balance of demand and supply in residential property, most of the
evidence suggests that the current position is closer to the early
1980s than the early 1990s."
He explained that this means the housing market is expected bounce
back rather than fall further, noting that MPC fiscal policy had
helped to restore confidence to the market and the wider
economy.
However, Mr Sentance noted that, in the short term, problems within
the banking system would continue to suppress demand for
property.
The British Property Federation represents the interests of all
those involved in the industry, both in commercial and residential
sectors.