02 May House prices expected to rise by £50000 by 2021
House prices expected to rise by £50000 by 2021
The cost of the average home is due to rise by 2021 to a staggering £272’000. Even by the end of the year, the average UK house price is due to continue to rise to a whopping £220’000 by the end of this year. We look into how this is likely to affect you as a seller and you as a buyer. We also look into how this will affect the sell house fast property market and if you are trying to achieve a sell house fast sale then what should you do?
Over the coming five years, property experts are expecting a £50’00 average price increase many economists are predicting. Although the following two years House prices are predicted to slow down we will still see an increase in the overall average house prices. The lower than average increase in the few years is expected due to the negotiations due to the UK leaving the EU. With the negotiations due to come to a close in 2021, we may be set a slow sell house fast market.
Over the next two years, prices are due to raise £9000 and then a further £41’000 the following three years.
The research comes from The Centre for Economics and Business Research who said the cost of a home will be roughly £220,000 by the end of the year and £272,000 by 2021.
It’s not all good news for those homeowners who are chasing capital growth. Last year we saw a price increase of 7.5 percent, however, this year we have only seen an increase in 4.4 percent. A clear indication that the changes to the county have gone through in 2016 is affecting the overall house prices and the sell house fast market as a whole. By 2020 and 2021, house prices are expected to grow at an average annual rate of 6 percent.
We are seeing that there is 40 percent of local councils that don’t how to meet housing demands over the next 10 years. These findings suggest a shortage of suitable housing stock will ensure prices keep going up.
Centre for Economics & Business Research
At the high end of the market, sterling’s depreciation since June’s Brexit vote will lead to a ‘pick-up in foreign demand’ over the next few years says the Centre for Economics & Business Research. However, with the french election coming up, depending on whether the country sways to left or right will shape the future of France, Europe and the world. If France were to vote right then they would most certainly vote to leave the EU, which in turn would have dramatic effects on the Euro and also the housing market. house prices are expected to continue to rise, higher inflation is set to erode consumer spending power.
Although house prices are expected to continue to rise, higher inflation is set to erode consumer spending power and in turn, will affect the sell house fast market.
Kay Daniel Neufeld, a Cebr economist, said: ‘Rising inflation and stagnating wage growth are expected to depress households’ spending power in the coming months.
‘The worsening financial situation of households could easily have a knock-on effect on consumer confidence, suppressing housing demand in 2017 and 2018.
‘Government interventions in the buy-to-let sector further sap demand out of the market. Starting in April, private buy-to-let investors will no longer be able to fully deduct mortgage interest payments from their tax bills, leaving them with lower net profits.’
The housing market has seen many changes over the past years which has had a dramatic effect on the sell house fast market. The main
Changes in the buy-to-let sector could also leave landlords with ‘substantially’ lower profits than they currently receive. As of April 2017, they can no longer offset the cost of the mortgage against the profit. this is leaving thousands of landlords out of pocket.
All of this comes a year after the government imposed an additional 3 percent stamp duty hike on buy-to-let and second homes.
Mr Neufeld said: ‘Government interventions in the buy-to-let sector further sap demand out of the market.
‘Starting in April, private buy-to-let investors will no longer be able to fully deduct mortgage interest payments from their tax bills, leaving them with lower net profits.’
This has affected the sell house fast market in a dramatic way with landlords up and down the country dumping the none-profitable stock. So what affect does this have on the sell house fast market? With more housing coming onto the market, there will be more competition. With increased competition, this may lead to either a slower increase in house prices or even worse a decline.
Along with the issues with the BTL market, the introduction of second tier stamp duty has also shaken the market hard. With homeowners having to pay an additional 3% on top the additional stamp they already have to pay. So what is this doing to the sell house fast market? The initial finding is showing that it’s slowing down the market with second home buyers having a second thought. With more houses on the market and more house spending longer periods of time on the market, a sell house fast service is becoming more and more unlikely.
Areas such as west London have seen the biggest hits with buyer confidence falling by the wayside due to astronomical stamp duty charges. The sell house fast market in seems to have lost is previous confidence.
As of March 2017 data from the Office for National Statistics revealed that house prices increased by 6.2 percent in the year to January.
The cost of the average UK home was £218,000 in January, which is £13,000 higher than in January 2016.
Region by region, house prices in London are the most expensive in the country, with an average price tag of £491,000.
The next few months will set the shape of the UK housing market for the next few years. With yet another election due in June that could shape up things to come for the next year. Things are also in the balance with France having a general election over the next few weeks. If France were to vote right and leave the EU what would that meant for the rest of Europe and even more so, what would that mean for the pound?
The sell house fast market is bound to see some major changes over the next few weeks and it is likely to shape the property market over the next year.