What does 2016 have in store for UK property prices?

What does 2016 have in store for UK property prices?

As a seller, you naturally want to get the best possible price for your home. But the big question is: what does 2016 hold for property prices?

Handily enough, there have been a number of forecasts over the past few weeks, looking at potential price growth over the next 12 months. Here is a round-up:

Reuters

Nineteen senior property market analysts were surveyed by international news agency Reuters, with the consensus being that prices will grow by 4.3% in 2016 and then by a further 3.9% in 2017.

CEBR

The Centre for Economics and Business Research (CEBR) predicts that average property prices will increase by 3.5% in 2016, with the shortage of homes being brought to market pushing values up across the country.

Halifax

Halifax has forecast that average prices will rise by 4%-6% over the next year. Again, it cites the supply/demand imbalance as the main reason for the upward pressure on prices being maintained in 2016. However, the bank has warned that the difficulty people currently have in getting a foot on the property ladder and the prospect of an interest rate rise will both prevent higher rises from occurring.

BNP Paribas Real Estate

The bank has forecast massive house price growth if, as many are predicting, the Bank of England decides not to increase interest rates from historic lows in 2016. Without interest rate rises, BNP Paribas predicts average house price growth of 6.7% in the next 12 months. If interest rates do rise, however, it predicts slower growth of 4.4% in 2016.

RICS

The Royal Institution of Chartered Surveyors (RICS) predicts that property prices will rise by 4.5% in 2016, with a shortage of new homes on the market and not enough new homes being built being the primary reasons for prices growing next year and for the foreseeable future.    

Rightmove

The country’s biggest property portal has forecast a 6% price rise in 2016. By this time next year, asking prices will be £17,000 higher thanks to a lack of supply. By the end of 2016, Rightmove predicts that the average property price in England and Wales will have comfortably surpassed the £300,000 mark.

According to the portal, no region in England and Wales witnessed average asking prices falling during 2015 and there is nothing to suggest that 2016 will be any different.

The above predictions are, of course, excellent news for sellers. All the forecasts predict price rises of at least 3.5% or more, which means that sellers can feel confident in getting a very good deal for their property over the coming months.

As long as the basics are carried out correctly – getting your marketing strategy right, ensuring you have a significant presence on the portals and making sure that your home is attractive and welcoming when viewings are carried out – then your chances of selling in the current climate will most certainly be boosted.