The leading property company anticipates that unless there is a surge of new properties on the market, house prices will soar.
House prices are predicted to rise by as much as 8% over the next year by estate agent Rightmove. This is compared to a rise of only 5.4% this year.
According to the Rightmove’s projected figures, London will be at the lower end of the spectrum, with an increase of only 6%.
The property site believes that the prices of homes in the South East will be at the top of the curve, and will increase in price by as much as 10% year-on-year. They have issued this forecast because they because they believe that availability will not meet demand.
This year marked the smallest December fall (-1.9%) since 2006. This is potentially a sign that the housing market will continue to gain momentum in 2014. December is typically a bad month for the property market, with people less willing to move around the festive period.
Prices are often their lowest all year around Christmas, and there’s usually far fewer properties available.
Miles Shipside, Rightmove Director said:
“There’s a listing gap to fill. While sales transactions are up 13% so far in 2013, the number of newly listed properties is only up by 2%.
“To help mitigate the upwards pressure on prices it is important that homeowners who have a move on their minds make it a New Year’s resolution to spring into action.
“A good and plentiful choice of property for sale would limit sellers from getting over-ambitious with their asking prices and result in a national average increase closer to 6%.”
“Consumer confidence is essential to a healthy market. Transactions only increase if people are motivated to make the financial commitment to buy and trade up. More will do so if they believe prices are on the way up rather than down, leading us to expect transaction volumes to hit the one million milestone in 2014.”
While low property prices might make it seem like a good time to invest in the market, it’s important to make sure that you understand all the risk factors involved in property investment, and that you get the best possible rate and deal on your mortgage for your circumstances.