The value of the property you own will increase by 3% over the course of the next 12 months according to surveyors. Rics has released its market predictions for 2017, which include the stabilisation of transaction rates and a rise in rents of between 2% and 3%.
Its forecast said the market would be dominated by a lack of supply with estate agencies seeing close to an historic low on their books thanks to the legacy of years of building on an insufficient scale.
Rics believes slightly fewer sales will be made over the course of the year than in 2016. The regions to invest in are identified as East Anglia, the North West and the West Midlands, which are all forecast to record higher than average price rises.
There’s good news for Londoners too, where prices are expected to stabilise after recent declines supported by the weakness of the pound proving an irresistable temptation for some foreign buyers.
Rics chief economist Simon Rubinsohn said: “Although recent announcements by the Government on housing are very welcome, the ongoing shortfall of stock across much of the sales and lettings markets is set to continue to underpin prices and rents.
“As a result, the affordability challenge will remain very much to the fore for many.
“Meanwhile the lack of existing inventory in the market is impacting the ability of households to move and will contribute toward transaction activity over the whole of 2017 being a little lower than in the previous year.”
Rics head of policy Jeremy Blackburn said: “The Housing White Paper will be a defining moment in January, to see if more radical thinking in Whitehall is a reality.
“The proposed ban on lettings agents fees, and the unintended consequences of such a blunt policy, will also be a strong feature of the year ahead.
“While the system based on large, private housing developers and homes for owner occupation has increased house building, it’s not delivering.
“The UK needs a co-ordinated strategy for building across tenures, using all of the delivery and technology mechanisms at our disposal.
“Before the EU Referendum, David Cameron said that if he could have found the button in No 10 to increase house building he would have pushed it repeatedly.
“In truth there are multiple buttons and following on from housing being put at the top of the list of Theresa May’s priority list in 2017, current ministers need to demonstrate a plan of action.”
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