Property price predictions
Since April 2016, the property market has been impacted by the introduction of the additional stamp duty for people buying a second property and the uncertainty over the EU Referendum. The continuing uncertainty in the market, related to what will happen in the wake of the Brexit vote, means that the market hasn’t started to rise yet and if industry experts are to be believed, it may take a while for the market to move forward.
This is a view suggested by the Centre for Economics and Business Research with a senior economist (Nina Skero) saying; “Although Brexit has certainly sent shockwaves, CEBR expects the housing market to slow down, but not plummet.”
The largest falls are expected to occur in London and the South, although this actually relates to a slowdown in property prices as opposed to a clear fall. This is the opinion of a specialist in the property market which suggests that while the rise in property prices in this area stood at 10.8% in 2015, the rise will stand at 3.5% in 2016. For 2017, prices are expected to fall by 1% but by 2018, the prices are expected to increase by 2%.
Figures in the most recent ONS House Price index indicate that the average asking price for a home in London is £472,204 so the idea of a slow-down or even a dip may not be unappealing to many looking to operate in the UK property market. It is important to remember that different people have different expectations in the property market. This means bad news for someone or one party will be of benefit to a different party.
There should be more stability in UK property market
The indication is that the market will be more stable in the next couple of years, which should be of benefit to the entire market. Given the uncertainty in the property market in 2015 and 2016, a few years of stability should be welcomed.
When considering property prices in Nottingham, it is important to remember that there are different areas to bear in mind. The East of Nottingham is highly regarded in the property market and in 2015; it was the area that experienced the biggest growth in property prices outside of London and the South East. However, much like properties in those areas, it would be no surprise if there was a levelling off of property prices in Nottingham East in the near future. The key trend for the next two years is consistency and less rampant shocks to the property market.
Nottingham house prices have been rising over the past 12 months
With house prices in Nottingham rising in the past 12 months (by 4% to £168,715 according to one source and by 7% to £177,676 according to another), the overall area is on the up when it comes to property prices.
While there is always the chance that an unexpected economic factor may disrupt the market, the general market conditions seem calmer than they have been in the past. This is the main reason why so many property industry experts expect for the market to be mainly consistent. There is still fallout of the EU Referendum and the buy to let market has been shaken up. This is why talk of a slowdown in property is expected but it isn’t anything to be overly concerned about.