It’s difficult to make any predictions at the moment, without having one eye open on the ever-changing economic, social and political climate we’re living in at the moment, but hey…we’ll give it a try!
January’s always a popular time when it comes to all things property. ‘New year, new me’ often means ‘new home’ too, so what do we think house prices have in store for us all in 2017?
Increases
Well first off, The Royal Institute of Chartered Surveyors has predicted a 3% rise in house prices this year, as opposed to 6% in 2016, so that’s a positive…for some. If you’re selling your property then you might not get exactly what you were looking for but you could still make a tidy sum. And if you’re looking to get on the housing ladder then prices could be set at a more modest level than last year.
The demand for houses is still vastly outnumbering the supply though and so this year will continue to be tough for first-time buyers. There are affordable housing schemes at the moment, but a lot more homes are needed to address the shortage. The Bank of England has set low interest rates, so this will keep demand high and with a housing shortage, push prices up.
Uncertainty
We had to mention it at some point – but obviously Britain’s withdrawal from the EU and the terms it does this on are going to have an effect on the wider economy. This in turn will have an effect on housing prices, as the overall performance of the economy is usually a good marker for house prices.
Economic growth is expected to slow slightly in 2017, which means a growth in prices is likely and combined with the shortage of housing – prices could rise further. Halifax predicts prices rising between 1%-4% over the next year.
Reasonable
The economic uncertainty and slow growth of the economy means that house price rises will be slow and steady, with fewer buyers in the market because of their reluctance to buy in a time of political and economic upheaval.
This is good news for sellers because they’ll see their properties rise gradually in value. Buyers can expect a little less competition in the market and small house price increases, which won’t be too off-putting. The growth in prices will be manageable.
Of course, lots of things could happen in 2017 which can influence house prices, so if you’re looking to sell or buy it’s worth closely following the market and doing your research.
Drop us a line and we’ll offer you some advice or a free valuation.
