Each quarter financial consultancy DRI-WEFA updates regional housing forecasts for the current year and next for housing transactions, starts and prices – exclusively for plastics manufacturer Wavin. DRI-WEFA then scores each region's housing economy, marking one star for worst performer, five stars for best. DRI-WEFA uses its own econometric model which responds to 30 pointers, such as industrial orders, employment levels and net reservations. Building Homes publishes this profitable information on a regular basis as the Osma Regional Housing Forecast.
2001 Third update: Key findings and forecasts
House price growth across the West Midlands looks set to ease over the second half of the year as demand slows once more. But weak supply across the region will ensure positive momentum for prices. Average property values are forecast to rise 4.9% this year. In Wales average house price growth is forecast to come in around 6.1% this year, making it one of the strongest UK regions. Start levels will continue to be buoyant. Greater London remains the strongest region, with property values predicted to climb 10.6% this year. But housing transactions will dip 6.1%, the weakest regional performance. Buying levels will remain historically high though, despite falling below the record numbers posted at the peak of the cycle in mid-2000. In the South East, build activity will dip a further 3.4% this year, the fourth successive year of declining activity. Private housing start levels are expected to remain disappointing in the South East for the next two years. Average property prices in Scotland are forecast to gain just 2% this year, the weakest regional performance in the UK. But DRI-WEFA believes the region is set for steady improvement, with average price rises of 5% forecast for 2002, buoyed by strong demand and improved regional economic performance.
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Housing market strength
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Source
Building Homes