A survey of 19 senior property market analysts by the news organisation Reuters suggests that the majority believe house prices will rise less strongly in 2016 than they did this year - despite a continuing shortage of supply.
The consensus was that prices will rise 5.0 per cent in 2015 on average, then by 4.3 per cent next year and 3.9 per cent in 2017 - all well ahead of current inflation levels.
All 19 analysts involved in the survey admitted that London homes were now ‘unaffordable’ or ‘very unaffordable’ while 14 of them insisted the national housing market was not ‘unaffordable’.
"Historically low interest rates mean that for those that can raise a deposit, housing is cheaper to own in most parts of the country relative to disposable income" the survey was told by Johnny Morris, research director at Countrywide.
"There is now unfortunately a vicious circle of undersupply and in-built cyclicality risk being built into a housebuilding market virtually completely reliant on the private sector," according to Mark Farmer of Arcadis, one of the contributors to the survey.
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