We, like many other operators in the market, like to make predictions for house price movements on an annual basis. That time of year is now upon us and we are already seeing the “big names” coming out with their predictions.
BNP Paribas: UP 7.3%
Capital Economics: UP 2%
Carter Jonas: UP 3.4%
Countrywide: UP 4.5%
Halifax: UP 4%
JLL: UP 5%
Knight Frank: UP 4.1%
RICS: UP 4.5%
Savills: UP 5%
Strutt & Parker: UP 5%
The good news is that the uniform consensus is for price rises. Quite why some predictions are to the decimal point is difficult to justify but those are the figures. Consensus would indicate 4-5%; steady solid upward growth.
The main points noted are; interest rates are important to watch, a shortage of housing could push these prices higher, areas with good transport links and job prospects will outperform, mortgage regulations may constrain the number of home movers and therefore transactions.
Importantly, we predict there will be a spike in activity from investors in 1st Quarter 2016.
For our predictions, we like to compare previous predictions to what actually happened in 2015; a harsh but fair analysis, before giving our 2016 predictions. You will find this in your newsletter to follow early in the New Year.
We wish you all a Very Merry Christmas and a prosperous New Year, and if you are considering benefitting from some of the above price rises (which please note are ungeared returns), then please do contact us.
The team at Osprey Lettings Kettering and Oakham