8th December 2015
Halifax predicts house prices will rise more slowly in 2016
House prices are expected to rise in 2016 – but at a slower rate than this year according to Britain’s biggest mortgage lender.
The Halifax predicts price rises of between four and six per cent next year, which is significantly lower than the current 9.7 per cent national average rate of increase.
The building society says the prospect of at least one interest rate rise in 2016, together with the increasing difficulty of getting on the housing ladder, is set to slow down the current price boom.
And the society’s analysts believe the prospect of further rate rises could to keep prices broadly in line with income growth beyond 2016.
“There’s little reason to expect any fundamental shift in the key market drivers in the immediate future,” commented the Halifax’s housing economist, Martin Ellis.
“As a result, the substantial imbalance between supply and demand is likely to persist, maintaining upward pressure on house prices in 2016.”
The Halifax believes that the final tally of all UK property sales in 2015 is likely to be similar to the 1.22 million figure recorded in 2014.