High-end agency Hamptons International has predicted that the house prices in England and Wales are likely to rise by 5% in 2015 and by 4.5% in 2016.
In December 2014 Hamptons estimated that prices across England and Wales would increase by 4.0% in 2015 and 4.5% in 2016.
Hamptons has said against the “improving economic background”, house prices will continue to increase, but that the pace of growth will remain subtle over the next two years due to affordability constraints and moderating price expectations for buyers and sellers.
The agency believe that London’s house price growth is expected to slow, but also remain positive, as the house prices outside of the prime central markets are in fact stronger than inside them.
Although the changes in stamp duty made an impact, housing market activity throughout this years has been disappointing. In the first half of 2015 and 2014, sellers were reluctant to come to market with 15% fewer homes for sale.
The agency forecasts that in the remainder of 2015 prices in Greater London will grow by 6% (4% in 2016) outperforming Central London where prices are expected to rise by 3.5% (3% in 2016).
The South East and East prices should see a rise of 6.5% in 2015 and by 5% in 2016. The South West is forecasted to end the year with a 4.5% increase and then again with 5% by 2016.
Hamptons expect that by the end of 2015, prices in the North East to increase by 2.5% (3% in 2016) and by 3% in Yorkshire & Humberside (which is set to rise by 4% in 2016).
The North West is the region standing out as the best performing region with price growth of 4.5% 2015 and 5.0% in 2016.