UK house prices tipped to rise by two per cent in 2017:growth predicted amid Brexit uncertainty

House prices are expected to rise across the UK, with London's outer boroughs leading the way.

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House prices across the UK are forecasted to rise by two per cent in 2017, making it the seventh year of consecutive price growth.

The rise in asking prices is expected against a backdrop of stretched affordability and despite Brexit uncertainity, according to the latest Rightmove House Price Index.

The average UK asking price currently stands at just below £300,000. Across London, the average rises to £616,000.

London's outer boroughs - best described as the boroughs beyond Zone 2 - are predicted to lead the way in terms of house price growth, rising by a full percentage point above the UK-wide forecast for 2017, as Londoners continue to move further away from the city centre in search of more affordable housing.

Meanwhile, inner London house prices are likely to remain weak. A fall of five per cent is forecasted in 2017 as the re-adjustment of prices to match buyers' greater reticence continues.

“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," says Miles Shipside, Rightmove director and housing market analyst.

"For the time being any nervousness 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.” 

Supply is still tight according to the property website, with available stock for sale per agent down by five cent.


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