Brian Holt welcomes 15% price rise forecast

The assertion, by the Centre for Economic and Business Research, is based on the fact that a shortage of housing will slowly push up prices.

Economic experts say the price of the average three-bedroom home will rise by more than £25,000 from £176,184 to £202,068 by 2016.

Brian Holt, from the estate agency which has offices in Leamington, Kenilworth Earsldon and Coventry city centre said: “The CEBR believes that despite the economic downturn, a persistent shortage of housing will trigger an upswing in house prices.

“And they add that further quantitative easing measures - when the Bank of England injects cash into the economy - should make it easier to get a mortgage.”

House prices will rise gradually, by 1.6 per cent next year, before reaching an annual increase of 4.3 per cent in 2016, according to the CEBR.

“Price is the barometer of supply and demand,” said Brian.

“Since there is an increasing and frustrated demand of people who would have liked to buy their own house, then prices are likely to nudge upwards, since the supply of houses coming on to the market is not as great as the potential demand.

“When the potential demand changes to real demand (which will depend upon the availability of mortgage funding), then prices are likely to increase.

“But since inflation is part of the equation, in real terms there is unlikely to be any growth if it remains at its current rate.

“Nevertheless it underlines the fact that home ownership is a good investment in the medium to longer term even when there are downward fluctuations in price.”

The report was issued in the same week that the Nationwide Building Society said house prices have remained “surprisingly resilient” in recent months, with values rising by 0.4 per cent in November.

Pictured: Brian Holt