We can help you find your perfect mortgage today...

Telephone: 0793 176 1122

0793 176 1122

2016: what to expect for housing

Posted on Friday 22nd January, 2016

Looking ahead to the next 12 months in the housing market, it’s worth asking ourselves: is it just going to be more of the same?

In 2015, interest rates remained low and mortgage borrowing continued to surge. According to the Office of National Statistics http://www.ons.gov.uk/ons/rel/hpi/house-price-index/october-2015/statistical-bulletin.html in the 12 months to October 2015, UK house prices rose by 7%. In the East and the South East, the average increases were 10.4% and 9.5% respectively. Good news if you had significant equity in your home, less so if you were struggling to get on the property ladder.

So what’s next in 2016? According to the Royal Institute of Chartered Surveyors http://www.rics.org/uk/news/news-insight/press-releases/uk-house-prices-to-rise-by-6-in-2016/ house prices are predicted to increase by 6% in the UK over the coming 12 months. Again, we should expect these figures to be higher in the East and South East as demand continues to outstrip supply. So far, it’s all sounding pretty familiar.

However, there are some changes anticipated for 2016. For example, we should see a cooldown in the buy-to-let market, which accounted for around 15% of mortgages taken out in 2015. From April, a higher rate of stamp duty for second home owners will come into force; last July the Chancellor also announced a cut in mortgage interest relief for higher rate taxpayers. The idea is to give first-time buyers more opportunities in a market where they often compete with professional landlords. Let’s wait and see if these measures have the desired effect.

Interest rates are expected to remain low – experts are still debating whether the Bank of England will increase the base rate from 0.5% this year or wait until 2017. Either way, large increases aren’t expected. So while house prices look set to rise at a higher rate than salaries, we’re still living in an era of very competitive mortgages.

As ever, there a lot of different factors to consider. Whether you’re a newcomer to the property market or a seasoned pro, we can provide the extra insight and expertise to achieve your goals. Please do not hesitate to contact us:


0800 970 1795


Contact us now Let us help you with your mortgage needs →

Our Other Services
Get in touch

Tel: 0800 9701795
Email: office@acorn4mortgages.co.uk

Facebook: facebook.com/acorn4mortgages
Twitter: @acorn4mortgages

The Legal Stuff

© Acorn4Mortgages Limited. Registered address: 1-3 The Mall, Ambrose Lloyd Centre, Mold, Flintshire, CH7 1NR. Registered in England & Wales under number 4270415. Acorn4Mortgages - Privacy Notice.

Acorn4Mortgages Limited is an Appointed Representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.

We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman. Our advice is covered under the Financial Ombudsman Service. You may be able to submit a claim through the EU Online Dispute Resolution Platform if you live outside the United Kingdom or if you prefer not to deal directly with the Financial Ombudsman Service.