House prices set to hit record highs in 2016

14th December 2015  |  12:00am

House prices set to hit record highs in 2016

The value of homes in the UK are due to rise £46 a day throughout 2016.

Stamp duty hike same as 11 months income for landlords

The prediction follows the release of a report by property website Rightmove showing average asking prices ended the year around £20,000 higher than at the start of 2015 – a rise of £1700 a month.

By the end of 2016, Rightmove says asking prices will be another £17,000 higher, pushing the price of the average home above £300,000 for the first time.

The increases are due to a “stark imbalance” between limited housing supply and soaring demand from buyers.

Asking prices in London are currently £55,458 or 9.9% higher than a year ago at around £616,548.

While average asking prices in the UK fell slightly month-on-month in December, the dip of 1.1% was the smallest recorded since 2006.

Miles Shipside, director of Rightmove, say: “While a fall is the norm at this time of year, this is December’s best post-financial-crash performance, signalling another round of price rises in 2016.”

The introduction in April 2016 of three percentage points’ extra stamp duty on buy-to-let and second homes announced in the Autumn Statement could create a surge early in the year, with investors snapping up cheaper properties, he adds.

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The Daily Express