House prices in UK are expected to rise further due to lack of supply

HouseHouse prices in the UK are expected to continue rising during 2016 due to a lack of properties in the property market, according to the latest index report. The properties that are currently in sale are 16.7% fewer than in the year 2014 December and the firm says that this is creating price hikes that are set to continue throughout 2016, and follows a rise of 8% in England and Wales property prices in 2015.

By now, the regions with biggest shortages of availability are having the quickest price rise. According to a prediction, East of England has been with the highest price rise of 13% wherein the rest of country is under 9%. A data shows that between the year 2010 and 2015, the supply of property has dropped by 27%, while price has gone up by 10.6%. Home.co.uk predicts in 2016 there will be a similar range of regional price rises as seen in 2015, which will be due to further reduction in supply. Buyers in Scotland, the West and East Midlands and the South West will see a year of rapid price growth as the supply crisis ripples out to these regions.

Doug Shephard, the firm’s director says: “Next year is set to see the violent circle of spiraling prices and falling supply deepen even further as buyers would take advantage of lower rates.”

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