According to Zoopla, the average price paid for a property is £266, 426 with the current average value of property sitting at £299, 740. The current average price paid has decreased 0.04% since December 2016. LA Lettings have seen a steady rise in House Prices nationally, with a higher increase in the North.
Terraced properties have sold for a current average value of £242, 758 while semi-detached properties valued £261, 869. According to current Zoopla estimates property prices have increased by 2.65% over the past 12 months.
According to Halifax, the biggest mortgage lender in Britain, house price growth will continue to rise but at a much slower rate. Halifax also provided that the forecast to a “higher than normal degree of uncertainty” about the economy in 2017, linked to the recent fall in sterling.
The buy-to-let sector is also expected to cool further as new tax rules restrict landlords’ profits.
Halifax said prices in London would slow more sharply than elsewhere, as affordability in the capital was already stretched.
Martin Ellis, Halifax housing economist said:
“Housing demand is being supported by an economy that continues to perform well with employment still expanding. Meanwhile, the supply of both new homes and existing properties available for sale remains low. This combination is pushing up prices.”
However, the current low cost of mortgages and the ongoing shortage of properties for sale would continue to support prices across the country, it said.
Nationwide Building Society predicts house prices to rise of about 2% next year, while the Royal Institution of Chartered Surveyors has said it expects property values to rise by about 3%.
According to the Halifax House Price Index:
- Sales in January were 4.9% higher than in December 2016; the fourth successive monthly increase. At 104,820, sales were the highest since March 2016 when transactions were dramatically boosted ahead of the introduction of higher stamp duty rates on second homes and buy to let purchases. In annual terms, sales in January 2017 were almost identical to those in January 2016. (Source: HMRC, seasonallyadjusted figures)
- Supply remains very low. The number of properties coming on to the market for sale fell in January after holding broadly steady over the previous three months. This indicator has now failed to increase for 11 successive months. As a result, average stock levels on estate agents’ books remain close to historic lows. (Sources: Royal Institution of Chartered Surveyors’ (RICS) monthly report)
- Housebuilding fell by 1% in 2016. New housing completions in England were estimated at 35,980 (seasonally adjusted) in the final three months of 2016. This was 4% lower than in the previous quarter, and 2% below their level in the same quarter in 2015. Overall, completions in 2016 were 1% lower than in 2015. Completions were 43% above their recent trough in the first quarter of 2013, but remain 26% below their recent peak in the first three months of 2007. (Source: DCLG)
With many predictions and uncertainty, the high demand for housing which cannot be supplied will likely keep house prices steady.
Author: Mr Sasha Charles
Sources: Zoopla, Halifax & The BBC