New year resolutions may be losing popularity, but new year predictions will never fall out of fashion. And the message that seems to be coming through is that 2017 will be a good year to buy.
One property index, Hometrack, showed that house price growth in London has slowed to its lowest rate in more than three years, while Savills said that the number of 25-year-olds who own their own home has more than halved in the last 20 years.
Despite the vote to leave the EU, most were confident that the property market hadn’t suffered. London saw a surge in overseas buyers taking advantage of the weaker pound and house prices in the UK continued to rise. This year will see another significant political change in the triggering of article 50 and as with any big change, there may be a level a lower activity and uncertainty around this period.
Some have predicted minimal to zero growth to prime property prices in 2017, while some luxury developers expect prime central London prices could drop by 1pc over the next year.
Others have higher hopes for the next 12 months, as the market adjusts to the “new normal” and buyers take advantage of low interest rates.
“History suggests years of low transactions are almost always followed by years of increased activity,” said James Evans, CEO of estate agency Douglas & Gordon.
Not forgetting Theresa Mays plan to build hundreds of thousands of new homes this year, granted not all will be complete, but many first time buyers will be looking to get ahead and get a deposit down this year.
Television property expert Sarah Beeny, says: “The housing market has survived Brexit and the reduction in interest rates has made mortgages the most affordable they’ve been for years, so I think 2017 will be another good one for the property market.”
The Royal Institution of Chartered Surveyors (Rics) predicted 6% growth for 2016, and the ONS figures are not far off. Simon Rubinsohn, chief economist at Rics, said 2016 had been “characterised by the stamp duty change” in April. “The stamp duty impact has been a much bigger factor in the profiles of activity over the year than the referendum.” For 2017, Rics has forecast growth will fall by half, to 3%.
