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Will house prices go up in 2019?

Property prices will rise by between two and four per cent in 2019, according to the Halifax.

The bank – one of the country’s largest mortgage lenders – made the forecast in its latest house price index although a more accurate picture should emerge when it publishes its first report of 2019 on January 8.

In isolation, it is encouraging to see relatively lower rises to give more people hope of gaining a foothold on the property ladder.

Of course, in a wider context, one of the key issues in north, south and Dorset is affordability; particularly in relation to salaries and house prices.

Latest figures from the National Housing Federation show that the average house in Dorset costs £311,426, which is  12.7 times the average wage of £24,518.

That’s well above the national average of 7.6 and far higher than the ratios demanded by some mortgage lenders.

Wage growth does finally seem to be on the rise, according to the Office for National Statistics, although it may take a while to feed through into areas away from London and the South East.

Housing supply also comes in to play with a persistent undersupply of homes in the area, which in turn leads to low provision of affordable housing and rising house prices.

It’s a vicious circle which Opening Doors aims to help break by encouraging the construction of 20,000 more homes by 2033 and by tackling undersupply issues.

There’s an interesting article on the Guardian website here which explores some of the issues surrounding house prices.

Don’t forget to sign our Home Ownership Register too, to receive the latest information about housing developments and help our councils gauge exactly what type of housing we need to push for locally.