What To Expect From The UK Housing Marketing In 2017:
The two main factors that are going to have an impact on the housing market in 2017 are stamp duty and the EU referendum result. The changes made to the stamp duty tax in April last year, saw the increase in cost on homes above £125,000 and on second homes.
The result of the Brexit vote has sent shockwaves through the UK and could have huge implications for the future of the British property market.
The Office of National Statistics showed that in 2016, the average house price was £217,000 – house prices are up by 6.9% every year which is the lowest figure since 2015. It’s been predicted that the growth will fall somewhere between 1% to 3% in the coming months of 2017. This significant drop is said to be caused by the uncertainty that Brexit has brought. This will make affording a home more difficult – so it’s important to question whether or not now is a good time to buy.
Property management experts have stated that since Brexit, there has been a lot of interest from overseas buyers, who are attracted by the weak sterling pound, but on the same hand, some sellers have also reported a decline in sales. The luxury market is on a steady decline, making it more appealing to foreign buyers and people who didn’t think they could afford to live there.
Buy to let:
Some of the most significant changes faces in the buy-to-let market will be tougher affordability checks for mortgages, but despite the changes it seems that the financial gain and ideology behind renting out property is unchanging regardless of financial despite the market. If buying a house becomes more difficult, there could theoretically be a surge in people wanting to let.
According to Savills, in the coming months of 2017, rental prices will increase by 2.5% and in London, this increase will be 3%. This increase has been justified by the prospect of a higher earnings growth across the UK.
Over the past year, figures have shown that the number of new homes being built in the UK was up by 4% in England with 147,880. Since the financial crisis, this has been the biggest improvement and is set to be on the incline for the remainder of 2017. Some more sceptical experts believe that this figure could drop to 134,000 in the coming months because of the market uncertainty.
Experts have predicted that this year, the North will see a higher growth (or possibly lower falls), than the past couple of years. It’s also been forecast that East Anglia will see a higher growth than the average UK figures – other areas which are set to overachieve are the North-West and the West Midlands, which means that commercial property management in Manchester, Birmingham, Liverpool and other cities are going to reap the benefits.
It’s thought that the market in London is going to take the biggest hit from the Brexit result, as it is the most vulnerable part of the UK to issues in exports and issues in the financial sector.