Rising UK Property Prices Seen in the Last 8 Months
Tuesday, November 7, 2017
Properties in the UK has steadily risen over the past 8 months according to Britain’s mortgage lenders. See full story here.Read more
Property prices have slowed as an outcome of Brexit negotiations but property values in all British regions will still rise above this year’s numbers by 2019. This is according to a number of UK’s biggest property developers. They predict that property prices will rise by 1.5% across the region this year. The end of the year looks more positive with an estimated 2% added price increase as well as 3% more by the end of 2019.
However, the persistent lack of housing will continue to support property prices, says reports. Buyers, including Chinese investors are choosing to stay and buy more properties mostly for buy to let. This is because affordability is an ongoing issue and rent vastly and continuously outpaces wage growth. Stamp duty changes have also affected these figures.
An opportunity to keep one’s eyes on is that demand still outstrips supply. The rate of new building is not expected to gather enough momentum over the next 2 years to catch up with previous shortfalls. Inflation will also continue to make it challenging for first-time buyers to get on the ladder despite the lowered value of the Sterling. But it is expected that the UK economy will recover and wages will pick up in response to the global economy.
According to reports, the biggest challenge for property investment will be Brexit. The real estate market is fragile at its current state which will be affected by the outcome of Brexit negotiations and its foreseen implications. Employment is most certainly a parameter being closely monitored.
The latest house price report from Rightmove, which indicates asking prices, support these predictions, with prices up 1.6% in London compared to the same period last year.
Average price of a 2 bedroom flat in inner London for Zones 1 and 2 is estimated at £795,000. The average asking price in the outer regions for the same type of property is £518,000.
In turn, average asking prices across England and Wales have risen 3.1% to £312,000 over the course of a year.
London has one of the world's top performing investment property markets which is forecast to continue its growth for the foreseeable future.Find out more