Expectations for the housing market 2016

December 30, 2015

As far back as I can remember us Brits have been overley obsessed with house prices, probably started when Margaret Thather came to power back in the late 70’s.

As we get close to the end of 2015 nothing has changed, property prices are again hitting what many see as unsustainable highs, this time the reason is being put down to supply not meeting demand, that is no surprise to me as we see ever inceasing numbers of people coming to the UK for one reason or another, be it Europeans coming here for work or lyfestyle to immigrants legal or non legal and refugees.

House building is underway and houses are being built, but it does  not appear to having any effect on  the housing supply side yet, is that because the influx of people coming to Britain is not stopping or subsiding? if that is the case then there seems little hope of getting the balance right and shortage of housing stock will continue as will the rise in house prices.

During 2015  average house prices across the UK have risen by 4.2% according to Land Registry figures, with some showing even bigger growth, that being  London where asking prices rose by 9.5%.

According to a recent report Estate Agent Knight Frank said, it expects prices to rise by 4.1% over the course of 2016, and by the end of 2020, prices will be 20.3% higher than they are now, but, as always, there are big regional differences.

Knight Frank’s head of residential research Liam Bailey reportedly said: “Values are growing more strongly in the South of England (particularly London and the South East) compared to slower growth in the North of England, Scotland and Wales.

“These regional differences are unlikely to unwind significantly in 2016, although the improving economic and employment picture, especially in the regions, will underpin pricing.”

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Overseas Property

The most in-demand holiday home destinations

Alicante is the ideal place in the sun when it comes to Brit foreign property dreams Province on Spain’s Eastern coast is the most popular destination for Brits in TV foreign property series Almeria and the Costa Del Sol are in the top three based on analysis of 1,000 episodes of A Place In The…
Read More →
Breaking News

Two Weeks to Go for First Phase of Renters’ Rights Act

With just two weeks until the first phase of the Renters’ Rights Act comes into effect, letting agents across England are being urged to ensure they are fully prepared for the significant operational and compliance changes ahead. From 1 May 2026, the new legislation will introduce wide-ranging reforms to tenancy structures, possession processes and rent…
Read More →
Breaking News

Housing Insight Report: February 2026

The housing market shows steady activity, ongoing challenges with sales agreed rising slightly and stock levels stable, while affordability pressures and longer transaction times continue to strain buyers and sellers. Demand is strong in the rental sector, with significant competition among tenants despite only a modest increase in available properties. Rents have remained relatively stable…
Read More →
Breaking News

London boasts biggest property market gap

UK’s property price gaps exposed: London tops with £838k difference between top and bottom of the market The latest research from eXp UK has revealed the scale of the price divide between the most and least expensive property markets across each region of the UK, with three areas seeing average house price gaps of more…
Read More →
Letting Agent Talk

Questions raised over tenant-agent trust gap

New research from Propoly has found that while over half of tenants describe their letting agent as professional, quick to respond to queries, and efficient in handling maintenance issues, issues still exist, particularly a widespread suspicion that agents are not working in the tenants’ favour. Propoly commissioned a survey of 1,000 UK tenants* to understand…
Read More →
Letting Agent Talk

29 is the age house sharing becomes ‘embarrassing’

but 11% still do it, according to new Nationwide research That equates to 27 million admitting they have felt embarrassed about their living situation With 69% saying living alone is unaffordable, it’s no surprise the average age of those in house shares is 35 From moving home (12%) to living with an ex (10%), as…
Read More →