Rightmove Predicts House Prices Increases This Year
House Prices Already Start To Increase After Election
The UK's largest online property agency has told buyers that they should not put off buying a home because they house prices look as though they will be going up in the short term. There has been a unseasonal fall in house prices this year as buyers and sellers took fright at the possible outcome of the general election. Asking prices for houses coming onto the market fell slightly in May by 0.1% but this will change as sellers start to increase their asking prices.
If you are a buyer waiting for prices to fall further you may miss out because all bets are that house price growth is likely to gather momentum this year as the housing market continues to benefit from low interest rates and the lack of new homes coming onto the market. London and the south-east is already outperforof ming the rest of the UK as property investors and first time buyers look to buy a property.
Shortage of homes driving house price inflation
The biggest driver for the increase is the shortage of homes coming onto the market. However many housing experts are now hoping that the number of new homes that become available may increase as sellers are able to make decisions with a majority Conservative government in place.
Many homeowners took fright at the prospect of a Labour government coming to power with it's threats of taxes and rental reforms that would be introduced. Now that all of this has disappeared it is hoped that there will be a better supply of homes coming to the market.
Estate agents report increase in activity from buyers and sellers
Immediately after the election estate agents reported more enquiries from buyers and sellers which is welcome news particularly if we want to see prices increase at a sustainable rate. Let's not forget that the Bank of England will be forced to act if prices start to runaway.
Many would argue that prices are already too high and there is a fair argument for that but with all of the incentives that are out there for buyers it is likely that prices will grow further particularly in the short term.