EY Item Club: Housing forecast 'encouraging'

The risk of a housing bubble in the UK is "extremely slim", according to one of the country's leading economic forecasters, the Ernst & Young Item Club.

In its quarterly report on the economy, the Item Club said government schemes such as "help to buy" will help boost house prices by 3.5% this year.

Peter Spencer, the chief economic advisor to the EY Item Club, told the Today programme's business presenter Tanya Beckett "the housing market is extremely depressed and is just coming out of a very large recession."

It also forecast that house prices will rise 6.6% next year, which he said was "a healthy sign" for the market.

"It all looks very encouraging," he added.

First broadcast on BBC Radio 4's Today programme on Monday 14 October 2013.