>

>

Cheap money to boost U.K. house prices 6% in 2016, RICS predicts

By Emma Charlton

/ Bloomberg |

December 23, 2015 9:00 AM SGT

Join our Telegram channel and follow our Facebook for the latest update.

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.

The Bank of England’s benchmark rate, the basis for most mortgage lending, has been at 0.5 percent since 2009 and has helped house-prices outpace inflation. The central bank has said it’s waiting for a sustained pickup in consumer-price growth before hiking rates and has signaled a preference to use macroprudential measures such as curbs on lending, to counter stability risks stemming from property.

RICS said it was “likely” that the central bank will use such measures next year to “complement the stance of monetary policy.”

Tags:

Follow Us

Follow our channels to receive property news updates 24/7 round the clock.

Subscribe to our newsletter

Top Articles

1

Sapphire Windows’ Liews: Beyond providing a room with a view

2

Keeping cool in an east-west-facing house with modern glass windows

3

Far East Shopping Centre’s $908 mil en bloc deal aborted

4

World’s largest Mercure Hotel opens on Club Street

5

Luxury living in the new heart of Bukit Timah

Our Site

Follow Us

Property Research

Condos

HDBs

Landed

Commercial

Industrial

Properties For Sale

Properties For Rent

Edgeprop.sg (previously known as The Edge Property Singapore) is the best property portal for real estate agents, investors, home-seekers and sellers alike in Singapore. On EdgeProp, you will be able to find the latest and hottest property news, property listings, and access tools for your research and analysis.

Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDBs, landed houses, commercial properties or industrial properties, we bring you Singapore’s most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions. Click into any listing to check out the new AI Redesign tool to envision your property based on your preferred style, be it Scandinavian, Minimalist or many others.

Make data-driven property decisions with our easy-to-use free and paid tools. The Edge Fair Value tool lets users calculate the fair value of a property, while the En Bloc Calculator helps to determine the probability of a Singapore project being put up for collective sale. Our whole new Research tool provides you data on past transactions, price trends, and more for condos, HDBs, landed houses, commercial properties and industrial properties.

Aside from that, EdgeProp also offers a market trends tracker that lets you access historical property data, sales volume and compare how similar properties are selling, a heatmap that shows you where Singapore’s most popular property sales locations are, a HDB lease tool to calculate your HDB tenure, an affordability calculator, and property alerts to track your preferred Singapore property by project or location, as well as information on new launches.

On the lookout for undervalued property or looking to rent? EdgeProp’s powerful search filters will let you personalise your property-seeking experience – whether you are looking for a property near MRT stations, amenities like schools, or within a HDB Estate or District – so that you find exactly what you are looking for.

View More

Close Ad

00:00