The
Bank of England may have to raise interest rates in the first three months of
next year to combat the UK's overheating housing market, according to the CBI.
Property prices are expected to increase by 8.2% this year and 5.1% in 2015.
Although overall housing transactions are currently running at 30% below their
2006 peak, the market is quickly picking up pace, with a 25% increase in London
prices fuelling speculation of a bubble.
CBI director general John Cridland
said: "Housing has come back under the spotlight as annual house price
inflation figures have reached double-digit figures on some measures."
(source: The Daily Telegraph)
