UK Housing Trends To Watch Out For
Britain’s housing market has continually slowed down throughout the years, and now has been affected by the Brexit. Official Land Registry data shows that yearly growth of the housing prices in the UK was 5.6% as of June. It may still sound like a roaring market, but this growth is down from 8% this time last year of the same month. But if you’re thinking of still investing in this sector, here are 3 property trends you should be aware of for 2017.
According to the guardian, the sluggish luxury market will still carry on by the same way. With the stamp duty, the prices of the property will be affected, and with the possibility of a referendum, causes the prices to be at tipping point.
Nobody is certain will what shall happen. There are even experts saying that, the luxury market is continually moving into a flat line. The prospects of buyers will not be from the domestic market, as there is little to no chance they think they could afford it, however there are some international buyer that are starting to show some interests.
There are also some agents that re-launched projects from 30 years ago, that may be attracting these overseas buyers. One other source says that with Brexit, the majority of these luxury purchases will probably be from overseas buyers.
There seems to be an exodus of people from London to other country places. The rental market in London seems to continually decline while the rest of UK continually rise. However, one expert argues that despite of that, there would be an increase in rentals in London by the end of 2017.
This is due to the fact that there is also an increase in the number of people per household, which makes it easier to find rentals because the payments are often shared by many individuals. This trend is often argued as a result of Brexit, while others suggest that it is due to the increase of low cost houses being sold outside the city.
Economists have been saying that interest rates will go up, and will become stagnant in time, making the capital return slow but sure. But with the new low interest rates, the rental market will still gain profit, so maybe it won’t be that bad to engage in this market as well.
Unlike the first two, the buy to let market has boomed incredibly in high rates. With the lower house prices, the profits in buy to let markets increase, making this market very exciting for investors. This possibility of profit does not only entice the domestic market, but also the international one, with buyers from Americas and Australia interested in investing in this kind of business. With the difficulty of finding cheap rentals in London, buy-to-lets have become easier to manage and become a more viable option for any Londoner.
If your goal is to make buy-to-let as a main source of income, it will be a hard and difficult. However, it is known that with the right location and the right pricing, your buy to let property can still be a good source of passive income. If done properly, buy-to-let housing will be a major investment opportunity.