House prices in the East Midlands will see an average increase of 4% over the course of next year, according to the RICS housing forecast for 2016.
The East Midlands see a modest price rise for 2016 compared to other regions. Nationally house prices are predicted to rise across the whole of the UK in 2016, East Anglia is continuing the trend seen in that region during 2015 with the highest predicted rise at 8 per cent. Meanwhile, the North East is likely to see more modest price rises with our predicted increase for 2016 at 3 per cent. The strongest areas of the UK for transaction levels are likely to continue trends seen in 2015, with the North East, Wales, Scotland and Northern Ireland outpacing the rest of the UK.
Although housing has climbed the policy agenda, with supply issues dominating the private housing market the RICS forecast suggests that the likely increase in prices in 2016 will outstrip any rise in household income.
Simon Rubinsohn, RICS chief economist, said: “Housing has clearly leapt up the government’s agenda but 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 over the next twelve months. 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.”