The 2017 forecast
With the New Year on the horizon, we take a look at what researchers and property experts are predicting for 2017.
One of the biggest headlines for 2017 is the rise in property prices, which is expected to increase by about 2%. This modest price growth takes into consideration the uncertainty of the market following Brexit, the increasingly stretched affordability that will continue to weigh on house prices, as well as the availability of affordable housing for first time buyers.
The predicted increase in house prices is in fact, slightly down on previous years. However it is the seventh consecutive year of rising property prices. London property prices are expected to continue decreasing, whilst East Anglia is predicting even higher house price increases. Our region is leading the way when it comes to house prices, with prices jumping a significant 11.5% to an average house price of £358,401. Diss in Norfolk has seen the largest leap of any UK town in 2016, rising 16% to £305,896, which is not expected to stop in 2017.
Due to the housing shortage and landlords passing new costs onto tenants, rent is expected to increase significantly in the coming year. In 2016, our region experienced a 2.85% increase in average rent rates, to £891.16 and this is expect to increase further in the coming months.
On the counter, landlords registering to buy properties is expected to drop. With the increase in stamp duty prices for second homes, on top of the increase in the up-front tax, buy-to-let mortgages may be a thing of the past in the coming years.
Want to know more?
For more information on any of the issues and predictions we have raised, simply get in touch with our expert team.