Take a look into the conveyancing crystal ball
The property market has hit rock bottom and can now start to enjoy its 5-year voyage back to what’s being dubbed “The New Normal”, according to a new research report by Legal & General’s Mortgage Club and the Centre for Economics and Business Research (CEBR).
It is predicted that in 2017 gross mortgage lending will rise to £212bn; an increase of £70bn on this year but still £151bn behind the peak of 2007. Nevertheless there is little point on dwelling on this seemingly significant shortcoming but instead embrace the change.
So as industry experts cast a wistful gaze into the future of the property market, here are the top 8 conveyancing predictions for “The New Normal”, scheduled for arrival in 2017:
- The average UK house prices will be £254,000, 11.9% higher than the average during the 2007 peak
- House prices will grow, on average, 4.1% each year between 2017 and 2027
- On average, houses will appreciate in value by £12,000 per year from 2017 to 2027
- CEBR forecasts 674,000 mortgage approvals in 2017, the equivalent of 1600 a day
- First time buyers will need a 15% deposit as average loan to value ratios increase 5% to 85%
- It will take 9 – 10 weeks to sell a home
- Mortgage affordability will be better as disposable income growth catches up with house price appreciation
- By 2017, mortgage rates will be around 3 percentage points lower than the 2007 peak.
Content correct at time of publication