House prices set for modest gains thanks to Government interventions

With much fanfare, the Government has brought forward by three months the launch of the controversial Help to Buy mortgage guarantee scheme. We remain unconvinced that it will generate a large number of additional sales, but what impact it does have will primarily be to raise house prices. That, plus signs that the economic recovery is gaining momentum, means we have increased our house price forecast and now expect gains of 5% in both 2014 and 2015.