UK housing market to see prices steadily rising
A new forecast from the Office for Budget Responsibility (OBR) suggests that while property price growth in the UK is set to slow, values will continue steadily upwards year on year. Compared to the last guidance issued in March the OBR has made a number of revisions to its forecasts, noting that both house price growth, sales and stamp duty tax receipts are expected to slow. According to real estate firm Knight Frank one reason for the short term slowdown in house price growth is weaker than expected market activity, with transactions revised slightly down, compared with the OBR’s March forecast. The OBR also revised its forecasts for stamp duty receipts. The property tax is forecast to raise £8.1 billion in 2016/2017, rising to £13 billion in 2021/2022. The forecast report suggest that revenue so far this year has been much weaker than expected, in part due to the drop in sales of properties worth over £1 million.
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