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Cheap mortgages a must for changing housing market

Date: Tue, 30 Aug 2005

The changing housing market means that the demand for cheap mortgages is set to increase.

The Centre for Economics and Business Research is predicating that the UK property market is likely to radically change over the next 20 years – with average house prices rising by 112 per cent to £333,000.

The centre believes that the traditional three-bedroom semidetached house will become non-existent in the south of England by 2025, because of the growing trend to convert larger properties into smaller flats that attract first-time buyers.

Increasing rages of divorce also means that demand for single person housing will rise, meaning that smaller dwellings will become popular with developers as well as forcing lenders to offer products that represent good value for single income households.

"Increased availability and affordability of houses mean that things are looking up for first time buyers, but this will come at a price," said Andy Gray, head of mortgages at Woolwich.

"Whilst the future looks sunnier for first time buyers, it’s increasingly looking like they won’t have a garden to enjoy it in," he added.


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