News
House prices set to rise by 3.3% according to reports
Thursday 8th September 2016
UK property prices will rise by an average 3.3% annually for the next five years, according to a report published by the Royal Institution of Chartered Surveyors (RICS).
Following the initial shock of Brexit, a monthly study report by Rics found that while price growth expectations have been affected by the EU vote, a shortage of new homes would support growth in the long term.
Prior to the EU referendum, it had been predicted we would see a growth of 4%, however after five months of market decline since the vote activity has returned in August.
It is also expected London prices will remain static compared with the rest of the UK over the next 12 months. This prediction ties in with warnings from housebuilders that the London market has been damaged by rising buyer costs.
With growth still predicted to be positive, changes to buy-to-let stamp duty has dampened demand. Time will tell over the coming year but according to many of the UK's biggest housebuilders, including Barratt Developments, are taking a "business as usual" approach.