The outlook for the UK’s property market in 2017
Britain’s decision to leave the European Union in June had many economists nervous about the impact this would have on the property market, but as the New Year dawns and consumer confidence returns, the outlook for UK’s property market for 2017 is expected to be slow but steady.
In a new report, mortgage lenders Nationwide projected that prices will rise at a modest rate of 2 percent this year. In the 2017 housing market outlook, chief economist Robert Gardner revealed the projections for the property market are interlinked with the country’s expected economic performance.
“Like most forecasters, including the Bank of England, we expect the UK economy to slow modestly next year, which is likely to result in less robust labour market conditions and modestly slower house price growth,” he said. “But we continue to think a small gain (around 2%) is more likely than a decline over 2017 as a whole since low-interest rates are expected to help underpin demand while a shortage of homes on the market will continue to provide support for house prices.”
Property prices expected to grow in spite of referendum results
Property prices had a strong finish in 2016 despite the Brexit vote, finishing the year with a growth rate of 4.5 percent – the same as the year prior. East Anglia saw the biggest rate of price increase, with the average price rising by 10.1 percent in 2016. Prices in the north did not perform as strongly, experiencing a change of just 0.1 per cent over the year.
Looking ahead to this year, Hometrack has a more ambitious projection of 4 per cent growth in 2017, but the nation’s housing market will undoubtedly encounter some difficulties. In the Autumn Statement, tax hikes and changes that will further regulate the buy-to-let market were criticised by many landlords, and if not repealed, these could potentially have a substantial impact on both the luxury property industry and rental market in 2017. However, the event expected to have the biggest impact on the housing market is the triggering of Article 50, slated for March of this year, which will signal the start of the two-year process of leaving the EU. This will undoubtedly play a large part in the performance of the UK’s housing market and the wider economy, in general, this year.
If you are planning a move in 2017, Friendly Removals can offer assistance with both residential and commercial moves around the capital. We offer moving and packing services in Notting Hill, Hampstead, St Johns Wood and other areas in and around West London. To find out more about how we can help with your 2017 move, contact us today.