Property prices may have slowed down recently due to the uncertainty surrounding the UK’s decision to leave the EU, but the long term outlook looks more positive.
A survey carried out by the Royal Institution of Chartered Surveyors (RICS) showed that growth in residential property slowed sharply in May, June, and July. This is along with new instructions, property sales, and inquiries from new buyers.
While 5% of those surveyed did see a rise in house prices, the country’s overall forecasts for growth over the next three months remain negative – despite this, surveyors polled for the survey give a better outlook for the next 12 months. Nearly all areas of the UK (except London and East Anglia) are set to see growth in home prices for the next 12 months as the shortage of homes remains while the housing market will pick back up.
Looking even further ahead; over the next 5 years RICS estimate average home prices will increase by 3% every year. Properties in London are looking at even more growth than the rest of the country, with an estimated 4% over the same amount of time.
House prices were widely expected to slow following the result of the EU referendum, but this survey could begin to imply that the UK housing market has become more resilient than many thought, especially following the recent cut in Bank Rate.
If you need further advice on sorting out your own mortgage amidst rising property prices, and what options are available to you, then get in touch with your local mortgage advisor today.