Property experts Rightmove has predicted house prices will rise across England and Wales by 1% next year. However, they also point towards a decline of a further 2% in London in 2018.
Annual price report
The website’s annual market report says that the price falls in London will be more than offset by the increased value of small and medium tier homes around the country. Rightmove says they list a huge 90% of properties sold by estate agents across the country, and use this data to analyse trends.
Average asking prices for a home in England or Wales currently stands at £302,865. This is 2.6% lower than November 2017, but an encouraging 1.2% higher than December 2016. An average increase of 1% would be the lowest annual increase since 2011’s rise of 0.8%.
Rightmove analysts expect that the kinds of properties that will increase the most (3%) next year are those typically bought by first-time buyers. These are generally two beds or fewer starter homes.
Second tier homes (three or four bedrooms, not detached) are set to increase by 2% over the same time period.
Last year’s predictions
In December 2016, Rightmove said that national prices would rise by 2% in 2017. While they did increase (by 1.2%), they weren’t totally accurate. They also predicted that prices in inner London would fall by 5% – they actually fell by 4%.
This year’s predictions match another report from estate agent Savills, which also predicted in November that average prices would rise by 1% in 2018. They also said that the market in the UK has proved “stronger than expected”, as they had suggested it would stagnate.
Mixed pricing pressures
Analysts at Rightmove further estimate that next year will continue 2017’s trend of being a mixed bag of pricing pressures. The result will be further slowing of the pace in price rises.
Price rises peaked in 2015 when they leapt 7.4%. The next year growth more than halved to 3.4%.
Regional asking prices
The average asking price for first time buyers outside of central London is £190,310 (that’s 3.5% higher than 2016’s figure). North Eastern England had the highest price inflation this year, rising by 4.7% and was the only region where prices didn’t fall in November.
Camden is London’s most popular borough, with prices rising by more than 19%. The second biggest price rise in London is Newham by 9.8%. Just a mile away from Camden, Islington saw prices fall by 10%.
In November, Savills predicted that the north-west will experience the fastest price growth in the country over the next five years, at 18.1%. They also predicted increases of 17.6% in the north-east and 17% in Scotland.