House prices to rise by 15% in four years

House prices will increase by 15% over the next four years due to a shortage of properties in the face of rising demand, according to economists.
The Centre For Economic And Business Research (CEBR) forecast that the average price of a three-bedroom home will rise by more than £25,000 by 2016,
This would take the average price of a typical family home from £176,184 to £202,068 in four years.
The CEBR said that, despite the economic downturn, a persistent shortage of housing will trigger an upswing in house prices.
House prices will rise gradually, by 1.6% next year, before reaching an annual increase of 4.3% in 2016, it predicted.