Nicola O'Hanlon
Nicola O'Hanlon
Senior Associate

Articles From the Team

The 5 year plan…

What will 2017 bring? For me, although I am managing to stick to my new year resolution of making regular appearances at the gym I am forced to do this because of the rate I am still consuming the ‘Christmas chocolate’ before it goes out of date! On a more serious note, having bought a house last year I am keen to know what the hell will happen with the property prices over the coming years.

In November last year, leading estate agents Savills were forecasting house prices to rise 13% by the end of 2021, which sees a typical value of £214k rising to £242k – a £27k rise over the next five years. This of course depends on how Brexit negotiations turn out. Whilst this is heading in the right direction, the increase in property prices will be lower than in the previous five years 2011 – 2016, which saw house prices across the UK rise £47,900.

Focusing more on the North West market, the average current value of a house is £147,000 with a forecast over the next five years of a 12% rise or £17,600, taking the average house price to £164,600.

Unless you are a fortunate account holder at the bank of Mum & Dad or qualify for the Help To Buy scheme, you may be one of the many people fuelling the rental market, which is set to increase at a faster rate of 19% over the five years to 2021 and up to 24.5% in London.

The good news for Northern home owners is that the North West saw the fastest rise in house prices last month, outperforming he rest of the UK including central London according to December 2016 RICS UK Residential Market Survey. More than half of the chartered surveyors in the North West (55%) saw a rise and this is predicted to continue over the next 12 months.

Although predicted sales and new instructions across the North West saw a slowdown. This was, as per the predicted slow start to 2017 with only 20% of agents in the North West reporting a rise in homes coming on to the market for sale. Low housing stock levels are a key concern with a lack of choice for buyers meaning there is also a growing demand in the lettings market with rents expected to rise over the next three months. And this rise is predicted to continue at around 5% per annum over the next five years.

Housing minister Gavin Barwell has said the eagerly awaited housing white paper due out this month will tackle planning, housing supply, tenure mix and investment and will set out a range of radical plans to boost the housing supply.

Personally, I’m going to remain positive and optimistic and enjoy the property market rollercoaster and hope for more ups than downs…

For more information contact Nicola O'Hanlon at BCL Legal.

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