House prices to rise 2% in 2017, says Rightmove

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Asking prices for properties in the UK will rise by 2% in 2017, although sellers in inner London will be asking less as the bubble ‘continues to deflate’, property website Rightmove has predicted.

Sellers entering the market over the past month have priced properties 2.1% lower than those putting homes up for sale the previous month, at an average of £299,159, but Rightmove said it expected next year to be a seventh consecutive year of rising prices.

Despite uncertainty over the UK’s decision to leave the EU and stretched affordability, new asking prices are 3.4% higher than in December 2015, and the firm said it expected high demand to continue to lift prices.

Miles Shipside, Rightmove director, said: “There was a bout of jitters with the unexpected referendum result, albeit now seemingly short-lived, but more may arrive after article 50 is invoked.

“For the time being any nervousness is being overridden by high demand for the short supply of suitable homes for sale in the lower and middle market in many parts of the country.”

However, in inner London, Rightmove has forecast a 5% fall in asking prices. In some boroughs there have already been double digit falls over the past year and in Camden, Rightmove said homes coming onto the market over the past month were typically 17.7% cheaper than in December 2015.