What To Expect In Property In 2017
2016 saw two significant effects on the housing market. Brexit and the change in stamp duty
As the UK’s uncertain exit from the EU prolongs economic instability, a new report reveals what this means for the UK housing market over the next five years.
Two years of exceptionally low growth has been forecasted for the UK in a report by Savills, which also predicts a dip in house prices in Scotland, Wales and the north of England. But experts believe the market will pick up again by 2019. The east and south east will become sought after regions of the country and are expected to grow the fastest.
Currently buyer sentiment is expected to remain fragile for the duration of Brexit negotiations, resulting in fewer transactions. However once homeowners have more clarity, confidence will gradually improve. Although slowing prices could be perceived as a positive for those trying to get on to the ladder, low levels of wage growth is also anticipated. Rising rents – up to 25 per cent higher, a result of increased demand from struggling buyers – are also anticipated, potentially making it more difficult for buyers to save for a deposit.
Stamp duty changes, introduced two years ago, had already started to have an impact at the top of the market, where the upfront cost of a house had increased significantly. Another change, the introduction of a higher rate of duty on second homes was introduced in April.
Latest figures, for October, show that across the UK, prices paid for homes were up six per cent year on year with the average price of a house now being £217,000. There has been a fall in the number of properties coming onto the market, with many choosing to stay where they are or to extend their properties.
The number of new homes being completed in Lancashire was on the rise in 2016 with plenty of developments to choose from and with investment schemes such as Help to Buy, growth will be slow, but an opportunity for people to achieve their dream and get a step on the property ladder.