Yorkshire and Humber house prices to increase by 6% in 2016

House prices in Yorkshire and Humber are set to rise by an average of 6% throughout next year, according to the RICS (Royal Institution of Chartered Surveyors) housing forecast for 2016.

With house prices 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%. Meanwhile, the North East is likely to see slightly less price rises with RICS’ predicted increase for 2016 at 3%.

RICS also claims that the strongest areas of the UK for sales are likely to continue trends seen in 2015, with the North East, Wales, Scotland and Northern Ireland outpacing the rest of the UK.

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.

“Looking further out, there is some justification for taking a more optimistic view of new build with significant incentives being put in place to deliver starter homes. While this may not on its own, stem the upward trend in house prices, it could help to slow the rate of growth to something closer to the probable rise in household incomes.

“Critically our principal concern with the measures announced by the government is that they are overly focused on promoting home ownership at the expense of other tenures. Discouraging Buy to Let could see private rents take even more of the strain if institutional investment doesn’t increase significantly, particularly given the likely reduced flows of social rent property going forward.”

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