House prices to keep on rising as supply drought continues
Nov 12, 2015
We're now into the middle of November, so in the next few weeks people will begin reviewing what has happened in 2015 and setting new year resolutions.
Due to the nation's obsession with house prices and how much our homes are worth, the property industry is one awash with forecasts at this time of year.
Staying true to form, then, we thought we would draw your attention to one of the most comprehensive pieces of research looking forward to next year and beyond, compiled recently by the Centre for Economics and Business Research (CEBR).
First thing's first, the economic forecaster has revised its house price growth figure for 2015 up to 5.6% after being forecast at 4.7% back in June.
The report also suggests that by the end of this year, the average UK house price will stand at £263,000. This figure is a fair bit higher than other house price data released recently.
For example, during September the Land Registry placed the average property value in England and Wales at £186,533 and Nationwide's average house price for October stands at £196,807. So, perhaps somewhere in the middle of these values may be best considered, which we calculate at £215,446.
Looking ahead to the next 24 months, then, and the CEBR predicts that average house prices will increase by a further 3.5% in 2016 and then a further 4.2% in 2017.
The research also calculates that by 2020, the average UK house price will have eclipsed the £320,000 mark.
So why are average house prices continuing to rise???
The reason for on-going house price increases is down to a severe shortage of property coming to market, according to the CEBR.
It outlines a number of reasons for this stock drought:
- As more and more Brits expect house prices to keep rising, many will put off selling their home, aiming to wait till the 'top of the market' is reached in order to achieve the highest sale price.
- The UK has an ageing population and as retired Brits are less likely to move home, this is having an effect on the number of properties coming to market.
- The cost of moving up the property ladder is increasing, which means people are staying put rather than selling up.
- Consistently low levels of housebuilding are prohibiting the number of new build properties being put up for sale in the UK.
What does this mean for you?
Well, as you will have worked out, if you're thinking of selling your home, the next few months may well be the best time to do so. With demand for property remaining high and the number of homes on the market remaining relatively low, your chances of finding a buyer and achieving your desired sale price are vastly improved.
If you think it's time to put your home on the market, here at Stephen Rea Estate Agents we'd be delighted to help. Our experienced sales team is here to help you and we'll manage the process from day one all the way till completion.
We also offer free valuations to give you a good idea of how much your property is worth in the current market.