The thing is, it is not just interest rates which will drive average prices higher over the next three years and it pays to note that prices are now lifting despite average new mortgage rates still climbing slightly since the start of the year.
One of the key driving forces is an acceleration in the pace of population growth to 2.1% in the past year on the back of a net migration gain of 87,000 people. People need somewhere to live and I can see from my monthly survey of property investors that their ability to secure good tenants keeps improving. This bespeaks of some eventual extra upward pressure on rents which will apply extra upward pressure to prices.
There is also the falling away of construction to consider. Costs have soared and buyers are backing away preferring to look at existing properties because of many stories of people losing their deposits.