Property prices to rise 6% next year
Average asking prices for UK homes are expected to rise by 6% next year, after a 7.4% rise in 2015, according to Rightmove.
2016’s increase in prices will be fuelled by strong demand and accessibility to mortgage finance, supported by schemes such as Help to Buy. A drop in the number of homes on the market is also likely to push up prices.
For example, according to Rightmove, Leeds has 3,500 properties for sale, a 30% decline compared to the market norm, despite a surge in buyers and tenants.
Outer London prices will rise by an estimated 6% next year, which could see many highly-skilled workers leave the capital for more affordable cities like Leeds, Edinburgh, Cardiff and Manchester.
London is expected to be hit the hardest by the Stamp Duty Land Tax (SDLT) changes introduced from April next year, as 15% of buyers there are landlords.
From April 2016, property buyers purchasing a second home or buy-to-let property will face a 3% premium on top of their usual SDLT bill.
Those looking to sell for the first time now should consider waiting to take advantage of the expected surge in landlord activity before the tax hike in April, said Miles Shipside, Rightmove director and housing market analyst.
But he added: “A lot depends on the dynamics of your local property market so doing your local research is very important as always.”