End of year house price update
by Housesimple on 1st January 2017
Every month, we share the latest news from the housing market with you to help you make the most informed buying and selling decisions. Here's our round-up of the last few months of 2016.
A rising trend
Towards the end of 2016, house sale prices in the UK continued to rise, maintaining a trend that has been trundling along for many months. In the three months leading up to November, prices increased by 0.8% and the annual growth rate spiked – reaching 6%.
It was also reported in November that rent in London has finally started to stabilise. Rental prices outside the city are rising more quickly than those inside the city – a trend that hasn’t been noted since 2010. The estate agent Countrywide shared that ; while they are still 60% higher than in the rest of the country, there is hope for struggling London renters.
Changes in buyer behaviour
In the wake of Brexit, . According to experts, this issue is now becoming smaller in our “back mirror”. Some buyers remain cautious, though, and the lack of houses on the market, coupled with continually rising house prices, poses a problem even for those ready and willing to buy. Affordability of homes in the UK is already stretched and this is likely to have real ramifications next year.
What’s next for UK house prices?
It’s predicted by the Royal Institute of Chartered Surveyors (RICS) that as we enter into the new year, . This will be due in part to the sheer lack of properties available on the market. This view is backed up by reports from both and . Buyer behaviour might pick up after it stalled following Brexit, but it remains to be seen how things will play out in 2017.