Average house prices are expected to rise 6% by the end of 2016 after a strong finish to the year which saw December asking prices take their lowest dip since 2006.

According to Mortgage Solutions after a monthly price fall of 1.1% in December, the annual price increase stood at 7.4%, figures from Rightmove’s December House Price Index show.

Asking prices in 2016 are now expected to rise by 6%, fuelled by strong demand and the momentum and aspiration for homeownership that schemes like Help to Buy create. This will also be pushed up by a 5% dip in available homes, despite buyer enquiries to agents rising by 37% since the beginning of October.

Leeds has 3,500 properties for sale, a 30% decline compared to the market norm despite a surge in buyers and tenants.

Outer London prices will rise by an estimated 6% next year, which could see many highly-skilled workers leave the capital for more affordable cities like Leeds, Edinburgh, Cardiff and Manchester. London is expected to be hit the hardest by the Stamp Duty Land Tax (SDLT) changes introduced from April next year as 15% of buyers there are landlords.

From April 2016, property buyers purchasing a second home or buy-to-let property will face a 3% premium on top of their usual SDLT bill.

 

 

Source: http://www.mortgagesolutions.co.uk/news/2015-12-14-house-prices-expected-to-rise-by-6-in-2016/   16/12/2015