What will 2018 hold for the property market? We take a look at some of the most popular property predictions for the year ahead.
The next 12 months are thought to bring substantial growth for many, such as a surge in popularity in Manchester’s trendy suburbs and rising property prices in the North West.
However, with many experts predicting an increase in asking prices for first time buyers across the UK, the property market won’t be kind to all.
Rising house prices
Rightmove estimates that house prices across England and Wales will rise by 1% in 2018.
According to Rightmove, the average asking price for an English or Welsh home stands at £302,865 - a 2.6% fall on November, but this is a 1.2% increase from a year ago.
If a 1% increase does go ahead, it will represent the lowest annual increase since the 0.8% rise recorded in 2011.
Estate agent Savills echoes the prediction. It believes a small percentage rise is likely due to a UK housing market that proved “stronger than expected” last year.
Continued property growth in the North
Savills also estimates that homeowners in northern areas will be rewarded. Yorkshire and the North West are amongst its top performers with gains of 1.5%.
The estate agent’s five year forecast suggests homeowners in these areas could see price rises of 17.6% by the end of 2022, more than double the rate in London which is expected to rise by just 7%.
It’s thought that the North West, supported by Manchester in particular, will see the greatest growth with an 18% increase in prices.
Increasing costs for first time buyers
Although many first time buyers will be celebrating the recent stamp duty news, Rightmove analysts expect the price of properties traditionally bought by first time buyers to go up by 3% this year.
Price decline in London
Although Rightmove believes there’ll be property growth across the UK as a whole, it warns of a 2% decline in the capital.
Russell Quirk, chief executive of online estate agent eMoov said: “In London, prices are up just 3% and while some boroughs have continued to enjoy very healthy price growth, there are large pockets that have seen property values decline rather drastically.”
Miles Shipside, Rightmove’s director and housing market analyst said: “We estimate that 2018 will continue this year’s trend by being a real mixed bag of different price pressures, both up and down. The net result is another year of a slowing in the pace of price rises.”