What Can We Expect to See From The Property Market In 2017

What Can We Expect to See From The Property Market In 2017

Every year, property market experts say that the housing bubble is going to stop inflating. But those house prices continue to keep steadily rising, don’t they? However, perhaps 2017 is the year that the prediction comes true.

At the moment, house prices are rising a lot faster than the average wage, meaning a lot of people still can’t get onto the property ladder. With Theresa May looking to try and house the ever growing population, 2017 is likely to be a big year for development plans. Chancellor Phillip Hammond is at the forefront of making homes affordable to first time buyers with plans to build on brownfield plots and cut the new builds value by 20% to give first-time buyers the leg up they really need.

So, is 2017 the year for first-time buyers? It’s looking that way at the moment. With government Help to Buy schemes, banks offering 0% deposit mortgages and the opportunities that of Buy to Rent pose, it’s positive news for the 24-40 year olds out there who haven’t made it into their first home yet. Moreover, the government are trying to stop Landlords snapping up all of the cheaper housing by increasing taxes on buy-to-let homes, as well as Stamp Duty on second homes. This change comes as research has shown that the number of 25-year-olds who own their own home has more than halved in the last 20 years. So instead of trying to increase the average salary, the government’s answer is to try and lower house prices in the property market.

If you’re a city lover, then 2017 is the year to buy in London according to experts. There’s going to be a slow-down for the first time for many years, however, the average house price in the capital is still £474,000, over double the typical price in the UK as a whole. The slowdown in central London is the result of the change made in 2016 with the stamp duty surcharge on buy-to-let and second homes. There still are stamp duty bands, but rather that 0% on a home worth up to £125,000, if it’s for a buy-to-let or a second home the stamp duty will be 3%. This increase goes up through the bands remaining 3% above the standard rate across house prices.

Continuing along the theme of the increasing stamp duty means that the luxury property sector might take a plunge as we go into 2017. The stamp duty on homes costing over £1.5 million is 15% rather than 12% so that’s £225,000 instead of £180,000 in just tax – something that could put people off buying a second home in one of the exciting new apartment developments costing over £4,720 per square foot. However, with flats and apartments costing anything from £5 million to an outrageous £23 million and beyond, it’s difficult to imagine that 3% of tax will affect those who want to more to their portfolio. So far, 2017 is leaving property experts in a state of trepidation; will punters risk their cash on a potentially falling housing market? Or, will the UK property market continue on the path it’s been on for some time? Only time will tell.

Is equity release a good idea for 2022?

Equity release can be a good idea for older people who would like to gain some extra cash in retirement. Equity release can help you make home improvements, pay for the costs of care, help a loved one who is struggling financially, or pay off other debt. However, the release of equity is not suitable for everyone.

Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.
Taylor Holt - 300x300

Written by
Taylor Holt
Estate Planning Expert

Taylor Is Our Resident Estate Planning Expert. He Knows That Everything Revolving Around Wills or Funeral Planning Can Be a Sensitive Subject That People Don’t Like to Discuss. But He Also Knows How Important It Is to Know All There Is to Know About It. Taylor Makes It His Mission to Spread Awareness About Estate Planning, and We Believe Everyinvestor Is the Best Platform to Do That.

Monique - 300x300

Written by
Monique Pittman
Pensions Expert

Monique Is Our Resident Pensions Expert. Many People Postpone Planning Out Their Pension, Thinking That Is Something They’ll Have to Worry Much Later in Life. Monique Knows How Important It Is to Start Planning Your Pension Early, and She Wants You to Know It Too!

Written by
Lisa Schilling
Insurance Expert

Lisa Is Our Resident Insurance Expert. She Knows How Important It Is to Be Ready for Any Scenario, Especially When a Family Member Is Involved. Nobody Likes Being Found Unprepared in a Tough Situation! Lisa Can Find the Best Insurance to Cover Your Every Need, Present and Future.

Doyle Edwards - 300x300

Written by
Doyle Edwards
Mortgages Expert

Doyle Is Our Resident Mortgages Expert. He Comes From a Long Line of Financial Gurus, and It Truly Shows. Despite His Young Age, There Is No Question He Cannot Answer When It Comes to Mortgages, and His Ability to See Outside of the Box to Find the Best Mortgage Deals Is Truly Impressive.

jason stubbs 300x300 1.jpg

Written by
Jason Stubbs
Equity Release Expert

Jason Stubbs Is a Specialist in the Equity Release Sector. He Enjoys Helping Older People Who Are Struggling Financially Get Out From Under Financial Pressure.

rachel w.jpg

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
Mark Patterson

Written by
Mark Patterson
Mortgage Expert

Mark Patterson is a well-known expert in mortgages. He has been working as an expert for over 15 years, and he specializes in the UK mortgage market.
kath icon.png

Katherine Read
Consumer Affairs Writer

She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date

Nicola Date
Writer & Journalist

Nicola is a financial writer for EveryInvestor and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.