London property forecasts for 2016
When it comes to the property market and global trends within the property sector, London often leads the way. The early part of the year did show a slowdown in house price upward growth, but now an average of 10.6% is being achieved, from 7.3% in the previous quarter. According to figures from the Land Registry the South East region in general has shown the largest annual growth, with house prices up 8.4% from 2014.
So what is forecast for the London property market in the forthcoming year? Is there likely to be similar growth?
Forecasts for London, from Nationwide, Halifax and the Royal Institution of Chartered Surveyors, suggest that prices will continue to rise but at a lower rate than other parts of the country, where more affordable property can be found.
According to Lucian Cook of Savills:
“A period of sustained low price growth is needed to rebalance the market.”
Although Cook still expects the South East to record the highest levels of price growth next year and over the next five years in general.
Many London homeowners, according to the land registry, are taking advantage of the fact that there is a distinct lack of available property on the market at the moment, resulting in potential higher prices at sale. Miles Shipside of Rightmove says:
“We are not suggesting that this level of growth can or will be maintained, there is a high demand, lack of suitable supply and increasingly stretched affordability.”
London data showed that the largest annual growth was concentrated in the more affordable areas, which suggests a lack of available cash or unwillingness to stretch finances beyond reasonable limits. The price of an average London home could actually rise to one million by 2020 and prices are 9.5 per cent, or £53,923 higher than they were a year ago in London.
A factor which has changed home buying has been the change in implementing stamp duty from a slab style charge, to being levied progressively. The biggest area of saving can be found in purchasing homes at the lower end of the market.
All in all, with house prices in London and the South East forecast to continue to rise, owning property in London looks set to remain highly lucrative in 2016.
Auction House London prides itself in keeping you informed about present trends in the property market. We are experts in all forms of selling and buying property at auction.