Average UK house price predicted to be well over £300,000 by end of 2016

The average price of a UK house has already risen by £20,000 to £289,452 this year but is expected to rise by a further £17,000 by the end of next year.

Areas such as the outskirts of London, where transport links are set to benefit from the Crossrail development, are expected to benefit from a rise in house prices, aided further by new housing developments and improvements to local infrastructure.

Stephen Ludlow, Chairman at ludlowthompson, comments: “Improved transport links are giving more families and young people the opportunity to live in outlying areas of London. This is set to create urban villages, which will encourage investment in infrastructure and attract more shops and restaurants to the area."

Asking prices are thought to be 9.9% higher than last year with an average of £616,548. Improving economic conditions mean London is set to see a strong demand for housing in 2016 which will further boost house values.

We've also seen the rise of the SKI set, or people 'Spending their Kid's Inheritance' to enjoy their retirement, downsizing from larger properties in the suburbs to smaller flats within inner London - both of which have added to the general feel-good factor across the city as a whole.

Additionally, the new Help to Buy scheme announced in the Chancellor's Autumn Statement is another incentive for buyers and sellers within London.

The scheme allows potential buyers within any of the London boroughs to borrow up to 95% of the home’s value. The scheme applies to new homes worth up to £600,000 and there is no age limit for applicants. 

Stephen Ludlow adds: “The new Help to Buy scheme for London will encourage potential buyers to get on the property ladder and it will also create an added incentive for those thinking of selling their home in 2016.”