House price rises will slow to 3% throughout 2017, Rics says
Housing sentiment in the UK among buyers is likely to be subdued in the year ahead, but prices will still be pushed upwards, albeit slower than in recent times, by the fact that the supply and demand issue remains, according to the Royal Institute of Chartered Surveyors (Rics).
The organisation said that a legacy problem of too few homes being built in the UK to satiate new demand from buyers trying to get themselves a footing on the property ladder means that even at a time when political uncertainty and the Brexit process is making people less sure about buying, house purchases will still rise.
Overall for the year, the report from Rics said, it would expect to see house prices rise by about three per cent, which should be around half as quickly as they have risen for this year as a whole.
“Following on from the 2016 forecast, the supply pipeline or lack of it is at the forefront of the analysis and dominates the residential market,” it said. “While there is an improvement, the legacy of building on an insufficient scale has left the average inventory on estate agents’ books close to a historic low.”
Ever since the referendum in June this year, Rics has been reporting that there has been a fall in the number of new homes coming to the market, and even though the government is pledging to increase its own activity in this regard over the coming few months, it seems as though this is not something the organisation expects to change any time soon.
Rics also said that over the course of the coming year, it expects to see house sales fall ever so slightly nationwide. While this year should return final figures of 1.25 million, it said 2017 will experience between 1.15 million and 1.2 million sales.