The Office for Budget Responsibility (OBR), recently revised its housing price predictions in the UK, for the 2014-2019 period. The fiscal body had earlier predicted that the UK house prices were to grow by 27 percent in the coming five years, revising the figure to 30.8 percent, in its latest estimate. According to the OBR, 2014/2015 is expecting a growth of 8.6 percent, 2015/2016 of 7.4 percent, 2016/2017 of 4.3 percent, 2017/2018 of 3.7 percent and 2018/2019 of another 3.7 percent.
The latest forecast reveal that towards 2019's end, house prices may approach values that are 0.5 percent less than their peak values prior to crisis. The house price-income ratios are expected to reach 2.3 percent below the pre-crisis peak ratios. The revised forecast also estimates the transaction volumes to rise faster than it was predicted earlier. The transactions during 2014/2015 are expected to reach 1.28 million, which is almost 6 percent more than the December forecast.