United Kingdom

Details

  • Service: Tax, Budget 2014
  • Industry: Real Estate
  • Type: Press release
  • Date: 19/03/2014

Budget 2014: Imbalanced housing measures are creating the conditions to double your money in 2 years 

-OBR forecasts show house price inflation reaching levels not seen since 2007

Jan Crosby, Head of Housing at KPMG, said: “OBR forecasts released alongside the Budget highlight the dramatic inflationary impact the housing policy is having on the market. The OBR is now forecasting that house prices will rise by 8.6% in 2014 to 2015 and 7.4% in 2015 and 2016: these increases are at levels not seen since 2007. With a 95% mortgage through help to buy this creates the conditions for the house buyer’s equity to double over the next 2 years – not surprising that more and more want to get on the housing ladder.

 

“The problem is that housing supply changes slowly but demand is quick to change. This imbalance needs to be taken into account in policy measures.

 

“Extending help to buy becomes even more necessary in this environment  since the equity required to buy into an increasingly high value property market becomes even more out of reach for the average first or second time buyer.

 

“Make no mistake, supply side measures need urgent action and with the Bank of England being encouraged to be increasingly vigilant of the housing froth it is hard to see monetary policy not being influenced. The themes of increasing finance to SME’s, Garden Cities, facilitating custom build housing and public land release are all sensible supply measures – but they must be implemented swiftly.”


-Ends-


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KPMG Press office
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Zoe Sheppard, KPMG Corporate Communications

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Zoe.Sheppard@kpmg.co.uk

About KPMG:

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity an

 

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Zoe Sheppard

Zoe Sheppard

PR Manager - Consumer Goods, Retail, Property, Wales and the South West Region

KPMG in the UK

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