As we head towards 2018, it is important to look at how the UK property market is likely to be, giving buyers a good idea of what they can expect to see. Despite a number of changes to laws and regulations set to be introduced, industry experts are suggesting that the market will remain stable and consistent throughout the year, despite a potential initial boost.
Will the UK Property Market see much Change?
Stamp Duty exemption for first time buyers is likely to have an initial impact on the property market in 2018, with more first time buyers predicted, meaning that there will likely be more transactions further up the property ladder, representing somewhat of a ripple effect. The Government are also promising to build more homes, meaning that stock levels are set to rise and first time buyers are sure to benefit.
With the recent Stamp Duty announcements, which will see first time buyers exempt on properties up to £300,000 or £500,000 for those located in London, buying interest is expected to increase at the lower end of the ladder. The UK property investment market as a whole is likely to experience positivity moving forward, as displayed in the increase in popularity in the later stages of 2017, despite the ongoing uncertainty that Brexit brings. Although the market as a whole isn’t likely to witness house price increases, the addition of more affordable houses will increase interest and potentially the level of transactions.
The London Property Market
There are, however, still concerns over the current economic situation of the UK, particularly as Brexit negotiations continue to rumble on. As a result of this, buyers in the UK, and especially London, are being cautious over the prospect of moving house, with interest already at extremely low levels. Although 2018 is set to see another year of low transaction levels, it is set to be a consistent year and a slight increase on 2017 is predicted.
House prices in Central London are likely to remain at a stable level, yet transactions are predicted to increase as we head into 2018. There has been a 7% increase in activity in 2017, which is especially thanks to overseas investors using the fall in the pound to their advantage. It is widely thought that the Central London market has reacted well to current economic situations, such as Brexit and the introduction of new regulations. A good deal as a result of Brexit negotiations could also see the Central London property market thrive following 2018.
London is well known for achieving high rental income for rental properties, and 2018 will continue to see this, particularly because of such a high demand. However, landlords are beginning to see the impacts of changes to current legislations, such as the Stamp Duty changes, making the buy-to-let property investment market tougher for them to profit from. It is expected that more and more landlords will look towards alternative investment types because of this, meaning that the supply of such rental accommodation may significantly decrease.