According to Rightmove, the seasonal 1.1% dip in average asking prices coming to market in the past month is the lowest for any December since 2006.
These figures then suggest that the annual increase in the average asking price is 7.4%, or almost £20,000, and Rightmove’s housing market analyst Miles Shipside has said it “is a strong indicator that upwards price pressure will continue in 2016”.
He continues “Whilst 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. Despite the shortage of suitable stock in many parts of the market, demand for housing is on the up. Although the average price of property coming to market is already up by a hefty 7.4% compared to a year ago, Rightmove forecasts that prices will reach and breach new records next year.”
Rightmove’s forecast for 2016 is that new seller asking prices will rise by 6%, regardless of increasingly strained affordability and rising taxation in the buy-to-let sector.
Shipside also says “Whilst initiatives are in place to encourage developers to build more new homes to supplement the supply of existing ones coming to market, the lead-times are long and developers face capacity constraints. In the meantime strong demand is being further fuelled by the additional momentum and aspiration for home-ownership that schemes such as Help to Buy create”.
If Miles Shipside’s forecast comes true, it will mean that the average asking price will be £17,000 higher by the end of 2016.