Ever since last year, Brexit has caused uncertainty within the housing market and the result ensured us that we’d still be feeling a little anxious in 2017. Below is a roundup of the property market since 2016 and what that means for this year.
The Office of National Statistics looked at the latest figures and in October, prices had increased by 6.9% and the average price was around £217,000. Many indicators had shown that the growth had started to slow down ever since the referendum, but with more people wanting to buy houses.
The largest estate agency group in the UK – Countrywide has predicted that they will face a 1% fall in 2017, due to the Brexit vote and increased inflation. Fionnuala Earley – Chief Economist said, “These sorts of things will make it more difficult for people to afford homes and also make some people think twice about whether it is a good time to buy”.
Buy to Let
Figures shown by the HM Revenue and Customs revealed that 162,000 properties changed hands and 29,300 mortgages were advanced to landlords. It is especially landlords that face change in 2017 as there is a tougher affordability check regarding buy to let mortgages. The annual rate of growth regarding house prices has slowed down from a steady 9.3% in June to a shocking 6.9% by October.
Countrywide has revealed that the rent in London is falling and during November, the average rate of rent was 0.7% lower than the previous year, this was regarded as being the biggest fall in 6 years. It has also been predicted that the rent in the UK will rise by 2.5% in 2017, and up to 3% in London, a lot more than in 2015/16.