A survey of 19 senior property market analysts by the news organisation Reuters suggests that the majority believe house prices will rise less strongly in 2016 than they did this year - despite a continuing shortage of supply.
The consensus was that prices will rise 5.0 per cent in 2015 on average, then by 4.3 per cent next year and 3.9 per cent in 2017 - all well ahead of current inflation levels.
All 19 analysts involved in the survey admitted that London homes were now ‘unaffordable’ or ‘very unaffordable’ while 14 of them insisted the national housing market was not ‘unaffordable’.
"Historically low interest rates mean that for those that can raise a deposit, housing is cheaper to own in most parts of the country relative to disposable income" the survey was told by Johnny Morris, research director at Countrywide.
"There is now unfortunately a vicious circle of undersupply and in-built cyclicality risk being built into a housebuilding market virtually completely reliant on the private sector," according to Mark Farmer of Arcadis, one of the contributors to the survey.
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Who are the 19 wise bods.
Sounds like they all live in Safe St.
The opinions don't appear to highlight if some landlords flood reduced listings by the bulk in some reason streets.
Well, I for one am so glad that we have these 19 senior property analysts to state the bleedin' obvious. Thank you so much.
(Apologies for the grouchy response. It's too early and I haven't had my morning coffee yet!)
"All 19 analysts involved in the survey admitted that London homes were now ‘unaffordable’ or ‘very unaffordable’ while 14 of them insisted the national housing market was not ‘unaffordable’."
I'd agree with this, up to a point. The London market is on a whole other level and, to be frank, is way out of control. It's getting silly, it really is. Much of the rest of the country isn't anywhere near the sort of prices you see in London, but parts of the South East and commuter towns close to the capital are seeing prices rising at an alarming rate. Oxford, too, is often classed as one of the most unaffordable cities in the UK. Bristol, Cambridge, Bath. All these places are seeing prices rise way above wages. It's unsustainable and won't be solved until the supply side issue is sorted.
The government is making all the right noises about this, but sadly their record on housebuilding is nothing to shout out about (very far from it!). It's almost like there are vested interests in keeping prices high. Hmmm.
Well aren't these guys clever. I think anyone with an vested interest in property is aware of London's unaffordable nature, but it's great they cleared it up. Don't fear, there are still properties which are no where near the astronomical levels of Central London, you just have to know where to look.
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