House prices to keep on rising... but half as quickly
12-22-2016
House prices will have risen by more than six per cent this year, according to the RICS
House prices will continue rising in 2017 but growth is set to slow to 3%, according to a report.
The forecast from the Royal Institution of Chartered Surveyors (RICS) shows a marked slowdown on house price growth this year, which it says is on course to end 2016 at about 6.5%.
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A chronic shortage of supply will also see transactions drop to between 1.15 million and 1.2 million from about 1.25 million in 2016, the report shows.
But first-time buyers will continue to struggle to get on to the property ladder as the predicted 3% rise in prices continues to leave home ownership out of reach for many.
RICS also believes rent will go up by 2% to 3% across the UK in 2017.
Simon Rubinsohn, RICS chief economist, 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."