House price inflation will 'not be extensive' in 2017

The NAEA has predicted that there will not be any ‘extensive’ house price inflation during 2017, while the number of transactions will remain steady.

It also believes that first-time buyers should find it easier to enter the market as price inflation stalls with almost a third of agents predicting that sales to this group will increase.

Mark Hayward, managing director for NAEA, felt that it would be an understatement to say that 2016 had gone as expected and the property market was mostly still feeling the effects of the year’s events.

“The high-end London property market is suffering at the hands of increased stamp duty taxes, and while Brexit uncertainty definitely hasn’t helped repair this, it’s not the sole reason why London’s more expensive properties aren’t being snapped up at the same speed they were. 

“[We expect 2017 to] be more of the same; there won’t be a ‘property Armageddon’, but things won’t get much better for first-time buyers, and those looking to up- or down-size.”

David Cox, managing director of the ARLA, felt the number of new rental properties on the market would fall during 2017 and rent prices would increase due to new legislation. 

He felt that the outright ban on letting agent fees charged to tenants announced during the Autumn Statement would lead to tenants being forced to look for properties in cheaper areas.

“The government continues to lash out against the private rented sector to cover its own failure to build the number of homes this country needs. 

“Such policies will have a detrimental effect on the very people the government aims to help the most. 

“As a result, we predict 2017 will be a raw year for renters. We now need stabilisation from the government before tenants are squeezed dry of every penny.”