There has been a noticeable slowdown in house price growth this year, according to the Royal Institution of Chartered Surveyors (RICS), with figures on course to end 2016 at about 6.5% overall.
A ‘chronic shortage’ of supply will see transactions drop to around 1.15 million in 2017 from around 1.25 million in 2016, according to forecasts.
However, it is predicted that first time buyers may continue to struggle to get on the property ladder as the predicted 3% rise in prices continues to leave home ownership out of reach for many.
Rent is also predicted to go up 2-3% across the UK in 2017, according to RICS.
“Although recent announcements by the Government on housing are very welcome, the ongoing shortfall of stock across much of the sales and lettings markets is set to continue to underpin prices and rents,” says Simon Rubinsohn, RICS chief economist.
"As a result, the affordability challenge will remain very much to the fore for many," Mr Rubinsohn adds.
A separate report from Zoopla suggests that the British property market is now worth a staggering £8.17 trillion.
It puts the average British home value at £325,575, and works out that the average home has risen by around £19,000 during 2016 – that’s £57 per day.
Properties in the East of England have grown the most since the start of the year, up 11.5% to an average of £358,401. This was followed by the West Midlands (up 8.7% to £220,993) and the South East with a growth of 8.4% to £411,376.
By way of contrast, more modest growth was seen in London, Wales and the North East of England, where property prices have risen by 5.1%, 3.8% and 2.4% respectively.
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