House prices across Brighton and Hove could increase by almost 50 per cent over the next five years.
A survey by Your Mortgage magazine forecasts a rise of 49.2 per cent in the towns. The prediction follows figures released by the Land Registry in February showing the average house price in Brighton and Hove has risen to £100,000 for the first time.
If the trend continues as predicted, the average price will be £149,200 by the year 2005.The research also indicates prices in East Sussex will increase by 46.5 per cent and 43.8 per cent in West Sussex.
The figures are based on research into population trends, projected income levels and employment forecasts, as well as interest rate projections and expected housing stocks. Estate agents reacted to the survey by warning
people to be cautious of any a long-term predictions.
David Golding, of Fox and Sons, said: "It is difficult to forecast what the market will be like in six months' time, so to predict figures reaching over five years is incredible. We do not know what will happen to the economy and I'm worried these
figures will mislead people.
"At the moment, the market is very volatile. The Government is trying its best to avoid a boom and bust situation and hold house prices to keep the market healthy. Prices cannot keep rising unless salaries and wages do as well because people won't be able to afford any kind of property."
In Tuesday's Budget Chancellor Gordon Brown increased stamp duty to three per cent for property sales over £250,000 and four per cent for sales over £500,000
in an attempt to curb the run-away housing market.
Brighton and Hove has the second-highest growth area in England and Wales for property price rises and the spiralling costs means many
local people are being priced out of the housing market.
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