loveMONEY reader predictions for 2016: the results


Updated on 12 January 2016 | 0 Comments

Here's what loveMONEY readers think will happen to house prices, wages, inflation and more this year.

We wanted to hear what you think is going to happen in 2016 to five key things that affect our finances: house prices, the Bank of England Base Rate, inflation, wages and the stock market.

At times you were in agreement and at other times, less so. Here are your financial predictions for 2016.

House prices

The Royal Institute of Chartered Surveyors (RICS) estimates that house prices will rise by 6% on average, which 22% of you agree with.

However, the rest of you are less optimistic about house price rises this year. Nearly half of you (48%) think house prices will only rise by up to 5%.

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Base rate

The Bank fo England Base Rate has a significant impact on your finances, particularly if you have a tracker mortgage. There’s been talk of a rise for quite some time, but as yet nothing has materialised.

Nearly half of you (49%) think there will be a small increase to 0.75% while 33% believe that things will just carry on as they are with no change.

Inflation

It’s safe to say that inflation hasn’t changed a great deal in the past couple of years, but many of you agree with the Bank of England that an upward change is on the way.

Half of you think that inflation will increase to 1% while 10% think we’ll fall into deflation. That said, 29% think that inflation will remain around 0%.

Wages

There’s some healthy optimism when it comes to how much money we'll be taking home in 2016.

Almost half of you think average wages will increase by up to 2% and 8% predict a more substantial 2%-4% rise. That’s about in line with HR company ECA International’s prediction of a 3% increase.

Let’s not get too extreme though: absolutely none of you thought that wages would increase or decrease by more than 4%.

FTSE 100

The future of the FTSE 100 had the most varied response of all the polls, thanks to a rather volatile 2015 and start to the new year.

A third of voters thought that it would increase by 5%. By contrast 17% thought that it would increase by 5% and 18% thought that it would stay the same.

Do you agree with these results? If not, it isn’t too late to have your say. Head over to Reader predictions for 2016 to cast your votes or share your thought in the Comments section below.

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