Cheap Money to Boost U.K. House Prices 6% in 2016

mystic_trev

Low borrowing costs and a shortage of supply will drive U.K. house prices up 6 percent next year, according to the Royal Institution of Chartered Surveyors.

Demand for housing remains strong, driven by record-low interest rates and a resilient economy, and values grew an annual 7 percent in October, according to the most recent data from the statistics office. Chancellor of the Exchequer George Osborne is attempting to boost supply and announced additional spending on housing last month.

“Despite the raft of initiatives announced over the past year, the lags involved in development mean that prices, and for that matter rents, are likely to rise further,’ said Simon Rubinsohn, chief economist at RICS. “Lack of stock will continue to be the principal driver of this trend but the likely persistence of cheap money will compound it for the time being.”

East Anglia will be the fastest growing region in 2016, RICS predicted, with prices set to climb 8 percent, while the South East and West Midlands will probably see values rise 7 percent. The slowest gain will be 3 percent in the North East, it said, while London is forecast to grow 5 percent.

http://www.bloomberg.com/news/articles/2015-12-22/cheap-money-to-boost-u-k-house-prices-6-in-2016-rics-predicts

Looks like the upward trend continues for the time being.

chucknorris

mystic_trev wrote: »

http://www.bloomberg.com/news/articles/2015-12-22/cheap-money-to-boost-u-k-house-prices-6-in-2016-rics-predicts

Looks like the upward trend continues for the time being.

Good!actually I do have sympathy for those priced out, 'good' was the one word answer that Graham used to type when bad news for HPI was posted

Graham_Devon

Oh the irony of this sentence...

"Record low interest rates and a resilient economy".

wotsthat

Plus people are having to cope with spending £0.22/ litre less for petrol this year and real pay rises. It must be causing havoc.

..and where do Brits like to spend any spare cash. Alcohol and houses - A&E admissions will probably increase as will house prices.

Generali

Graham_Devon wrote: »

Oh the irony of this sentence...

"Record low interest rates and a resilient economy".

It's the missing bit of the jigsaw that everybody* is missing.

Interest rates this low aren't just low they are at emergency levels and are screwing other parts of the economy. Interest rates will rise a long way from where we are now and the squeals of pain will be deafening.



*Okay not everyone but loads of people

Graham_Devon

Generali wrote: »

It's the missing bit of the jigsaw that everybody* is missing.

*Okay not everyone but loads of people

Not moi - I saw the irony

If the economy is so resilient - why are we still are emergency rates!?

kinger101

Generali wrote: »

It's the missing bit of the jigsaw that everybody* is missing.

Interest rates this low aren't just low they are at emergency levels and are screwing other parts of the economy. Interest rates will rise a long way from where we are now and the squeals of pain will be deafening.



*Okay not everyone but loads of people

Low? We have one of the highest interest rates in Europe. But at least we're not in Hungary, where they're an eye-watering 1.35%

jacko74

As Michaels said yesterday regarding any BTL negative articles getting their own threads... do we really need a new thread every time a HPI happy clapping fluff piece is printed?

purch

Graham_Devon wrote: »

If the economy is so resilient - why are we still are emergency rates!?

If it wasn't they'd be negative by now.

Graham_Devon

jacko74 wrote: »

As Michaels said yesterday regarding any BTL negative articles getting their own threads... do we really need a new thread every time a HPI happy clapping fluff piece is printed?

Yes. Even better to have two threads from the same poster based on the very same thing (as per this thread).

It's how forumonics works.

Thrugelmir

wotsthat wrote: »

Plus people are having to cope with spending £0.22/ litre less for petrol this year and real pay rises. It must be causing havoc.

Depends how much ones personal spend is impacted by deflation. I walk to work so petrol price makes little difference to me in the pocket.