House asking prices to rise in 2017 after 2% fall in December

Supply of homes going onto the market remains tight the firm said
Supply of homes going onto the market remains tight the firm said

The average price of a home in England and Wales will continue to head upwards during next year, although the pace of growth will be weaker than it is now, a property website predicts.

Rightmove expects home sellers’ asking prices to increase by 2% across 2017, slightly lower than the current annual pace of growth in asking prices, at 3.4%.

The website made the prediction as it said asking prices fell back below the £300,000 mark in December. Asking prices fell by 2.1% or £6,511 month-on-month, taking the average asking price to £299,159 in December, from £305,670 on November.

Rightmove said the monthly fall is exactly in line with the pattern seen for the past six years, as Christmas approaches.

If asking prices do continue to increase during next year, it would mark the seventh year in a row of rising property prices, Rightmove said.

While Rightmove expects asking prices to generally head upwards next year, it predicts that inner London will see asking prices fall by 5% in 2017 “as its price bubble continues to deflate”.

Miles Shipside, director of Rightmove, said that generally “for the time being” any nervousness about Brexit is being over-ridden by high demand for the short supply of suitable homes for sale in the lower and middle market in many parts of the country.

Rightmove said the supply of homes remains tight compared with a year ago, in terms of new-to-the-market listings and available stock for sale.

It said fresh supply is little-changed, being only 2% above last year and failing to keep pace with and replace the 5.2% increase in sales agreed.