House prices in England and Wales are predicted to rise by one per cent, data from Rightmove has revealed and buyers need to act quickly to get the best prices and mortgage rates.
The annual report has forecast small price increases across many areas of the country, with a two per cent price fall expected in Greater London. Rightmove’s figures indicated that the average asking price for a home in England and Wales is £302,865, a 1.2 per cent increase when compared with November 2016.
The predicted rise in house prices echoed a similar study from Savills, which also forecasted a house price rise of one per cent after a better-than-expected 2017.
However, it is likely that first-time buyers will be hit harder than the average house buyer.
FTBs should act quickly
Rightmove expects prices of typical first-time buyer homes to increase by three per cent in 2018, indicating people getting onto the property ladder should consider making their purchase sooner rather than later.
The Bank of England has also signalled that interest rates may continue to rise in 2018, following on from the first rate increase in a decade in October, which will lead to higher mortgage rates.
The expected price rise for first-time buyers and rising interest rates makes it important for buyers to act quickly to secure the best mortgage rates and prices on their new homes. Of course, the recent Budget provided some good news, with stamp duty abolished for purchases up to £300,000 for first-time buyers, but it is unclear how much impact the proposal will have for first-time buyers outside of the south east and London.
Colin Lewis, CEO of Avant Homes, commented: “The Autumn Budget was a real missed opportunity and big disappointment for the North of England. Our research of workers across the UK highlights that the chronic and expanding undersupply of housing in the North of England is a key element missing from the Government’s housing strategy, which needs specific policies targeted at the region, rather than the Chancellor’s current ‘one-size-fits-all’ approach.”
Tackling the housing shortage
The Government has spent a great deal of time and effort developing the Northern Powerhouse project. One of the aims is to create 850,000 new jobs in the North and while this is an admirable goal, reaching it will put a strain on the housing market and lead to price rises, which may price some people out of the market.
Colin added that the planning process in the North requires improvement, with planning issues contributing significantly to a 28 per cent decline in housebuilding in the region. The Government needs to intervene now and speed up planning times, as well as taking steps to free up new areas of both brownfield and greenfield land to urgently boost the supply of homes in the region.
If you are looking for a new home, why not check out what sets Avant Homes apart from its competitors.