Across the UK predictions have been revised as price growth has slowed. Predictions from Countrywide indicate a reduction from a rate of 5% in 2016, to 1.5% in 2017. In the North-West the picture is slightly healthier; we saw growth of 4.4% in 2016 and we are expected to see 2.5% in 2017, 2% in 2018 and 3% in 2019. Figures from the Royal Institute of Chartered Surveyors shows that figures in the short-term have taken a plunge from 7% growth in June to just 1% in July!
Fionnuala Earley, Countrywide’s Chief Economist, said: “Economic conditions for households will remain challenging over the next year as inflation eats into budgets and interest rates begin to rise. In addition, fewer landlord purchasers and the later age at which people buy, is affecting the level of demand. But we expect the UK economy to recover and wage growth to pick up in response to global growth. That, combined with a continued lack of housing supply, will help to support house prices.”
These figures are likely to be due to a market constrained by tighter mortgage lending criteria, extra stamp duty charges, in addition to the uncertainty surrounding the Brexit negotiations. It is expected that the growth rate will recover in the coming years as the lack of supply is likely to mean demand will continue to exceed supply in all major cities across the UK.