Rics says lack of housing supply will drive prices up faster than household pay rises with an average 6% rise across the country. House prices in some parts of the UK could increase by as much as 8% in 2016 as the recovery that has taken hold in London ripples out across the country. It has forecast a 6% rise in prices on average across the UK next year, with growth in all parts of the country. Rics said supply issues would continue to dominate the private housing market, leading to an increase in prices likely to outstrip any rises in household income.
US central bank announced a 0.25% increase in interest rates for the first time since the financial crisis to 0.5%. An interest rate rise in the US may not be bad news for UK based investors since an appreciating dollar should increase translated earnings for UK based companies. UK exports to the US could receive a boost as it would be cheaper in terms of the dollar.
So far this year 2015 the average asking price for a home has risen £20,000. House sellers' asking prices have ended the year nearly £20,000 higher than when 2015 started, according to Rightmove. And in a year's time, asking prices will be another £17,000 higher than they are now as the "stark imbalance" between housing supply and demand from buyers continues to push property values to more record highs, the website predicts.
Potential first-time buyers would have lower monthly outgoings if they bought a property than they do renting, according to new research from Santander Mortgages. In every region of the UK, average monthly rental prices now surpass those for the average mortgage repayment.
Up to one in seven (14%) of homeowners trying to remortgage in the past two years have failed to secure another deal, according to Nottingham Building Society. Its study found that missing out on a deal with their existing lender or a new lender meant higher monthly costs for 26% of those who could not remortgage with 8% seeing a substantial rise in payments.The main reasons for not being able to secure a new deal included tighter affordability rules under new mortgage market regulations and issues with credit records.