What could happen to house prices in 2017?

What could happen to house prices in 2017?

Not everyone was a fan of 2016. It wasn’t a good year for a lot of people. So is 2017 set to be any better? Well, when it comes to house prices, the jury is still out!

The Royal Institute of Chartered Surveyors (RICS), who projected a massive 6% rise in house prices last year, has predicted a more modest rise of 3% in 2017. Nationwide has stayed similarly cautious, predicting a rise of 2%. Nationwide’s Chief Economist, Robert Gardner, has added a caveat that the prices will be heavily dependent on how the rest of the economy fares and the uncertainty there has led to some uncertainty in his team’s predictions.

Halifax has also played it safe, hedging their bets and estimating that housing prices will rise by between 1% and 4% in 2017. Like his counterpart at Nationwide, Halifax’s housing economist Martin Ellis, is attributing his inexact forecast to the ongoing economic fallout from Brexit

As well as the UK’s unpredictable economy, the shortage of homes in Britain – both new build and existing properties – will impact house prices. Demand is likely to outstrip supply in 2017, which should positively impact prices, but will also create yet another year of problems for first time buyers trying to get on the market with mortgage lenders unlikely to be very generous. The good news is, a nice slow rate of growth will mean that existing owners will benefit from sustained capital appreciation.

So what does that all mean? For Scotland, probably not much. 2017 is set to be much the same for house prices as 2016 unless something dramatic changes in the economic or political landscape…and your guess is as good as any of the economists on that one!

If you’re considering buying or selling in the East Kilbride area this year, get in touch with Joyce Heeps Homes.