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UK house prices set to remain flat in 2017 amid Brexit uncertainty

UK property prices are expected to remain largely unchanged in 2017, owed largely to uncertainty over Brexit negotiations, according to the National Association of Estate Agents (NAEA).

A survey of estate agents found that 43% expect prices to remain flat while almost a third - 29% - believe that first-time buyers will find it easier to get a foot on the housing ladder, although there will be no major improvement in affordability for most purchasers.

While help for first-time buyers is predominately focused on new build homes, the NAEA’s managing director, Mark Hayward, believes that more should be done to help this group of buyers acquire older properties, mainly because ‘fixer uppers’ tend to offer better value for money in the long-term.

Hayward also wants to see housing remain top of the government’s agenda, with more done to increase the supply of much needed new build homes across the country, which includes alleviating the challenges and obstacles facing residential property developers.

The failure to construct enough homes means that Britain’s housing shortage has now reached crisis point, with the number of prospective buyers and renters dramatically outweighing the volume of homes on the market, while restricting the level of housing stock sales and letting agents have to offer. 

Hayward commented: “It would be an understatement to say this year has not gone as expected. However, the property market is mostly still feeling the effects of events which happened last year.

“The high end London property market is suffering at the hands of increased stamp duty taxes, and while Brexit uncertainty definitely hasn’t helped repair this, it’s not the sole reason why London’s more expensive properties aren’t being snapped up at the same speed they were.

“Next year, we expect it’ll be more of the same; there won’t be a ‘property Armageddon’, but things won’t get much better for first time buyers, and those looking to up or down-size.”

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    Residential house prices will remain stable, but rents will be affected by
    1.supply & demand caused by changes to EPC rules
    2.Brexit(uncertainty)- will foreign money continue to come to UK
    3.Tax changes- particularly affecting those on the threshold of higher rate tax bands & those with multiple/single mortgages with high loan to value/rentable prospects
    4.Brexit(uncertainty)- will jobs migrate away from UK..particularly outside London.
    5.Availability for first time buyers to get mortgages(bank lending strategy) & point 4
    6.Future tax changes planned by the Chancellor of the Exchequer in 2017(based on the outcome of 2 &5)
    7.Procrastination by all
    8.Rents may rise - based on landlords needing to make a return.
    9.The continued assault on Landlords by Government/Legal system & Media

    My summary...I too expect 2017 to be "nationwidedly" flat for house prices- but as landlords decide there is no return/effort/reward is too small- houses will appear on the market. They wont be sold for the gains people expect and rightly or wrongly, as tax returns are latterly due..prices will drop, but sales still wont be made until 5 is addressed.



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