The real estate market in the United Kingdom has been undergoing serious changes over the past decades. Given the amount of money that people have invested in this industry, it is only fair that we give you a glimpse into the future of this industry. With the analysis of the present trends as well as the predictions, you will likely be able to understand the opportunities that you have in the real estate market and the precaution that you need to take to protect your investment.
Industry Revenue Rising
Resilience has continued to define the economy of the United Kingdom as the trading and political environment remains challenging. The Brexit uncertainty has directly influenced business and buyer confidence. The government has asked her majesty the queen to suspend parliament over the same issue that led to the resignation of Theresa May. However, the country is not new to these political maneuvers. As at now, the residential and commercial property markets are responsible for revenue growth. However, residential property transactions have never been stable for the last few years. However, that has had no adverse impact on the economy given that industry revue continues to rise.
Online Continues to Grow
The number of homebuyers and sellers that are turning to online estate agents, such as Propertyflock, has been increasing consistently. Possibly, the high quality of service that they offer coupled with the convenience that advanced technology offers is responsible for this increment. People want flexible contact hours, lower service costs, face-to-face visit from local experts, and responsive, 24/7 customer support.
House Prices Increasing
The prices of houses have been inclining at a high rate in the recent past too. As of April 2018, the average price was £226,906. Today, it is about £230,292, according to the House Price Index. The index currently stands at 120.78. From this figures, it is evident that the prices of property in the UK has risen by an average of 0.9% from last year. With the present uncertain political atmosphere, the prices may continue to go up. Industry experts think that it will have increased by about 20% by 2022. That may be good news for some people who intend to sell their houses in the near future.
Homeowners on the Increase
Despite the rise in the cost of property in the UK, the number of people buying homes has been increasing consistently. This has happened for the first time in 13 years. The global economic meltdown of 2008 created an imbalance between property prices and wages. The UK government swiftly responded by prioritizing homeownership. It announced a loan scheme that has ensured the purchase of over 160,000 properties. First-time buyers have made approximately 81% of the purchases. At the same time, Stamp Duty cuts are saving 80% of these first-time homeowners up to £5,000. Due to the increase in the rates, the cuts, nonetheless, will only benefit these who have already bought these properties.
Popularity of New-Build Homes Increase
Many new homeowners and buy-to-let investors are choosing new-build houses over the old ones for many reasons. They value higher energy efficiency. These people know that they are able to save hundreds of dollars per year when they live in these properties. The Help to Buy Equity Loan scheme is a quite appealing to them. They want to save money, but that is not all. These buyers cherish to have the chance to customize their buildings to suit their unique needs. Evidently, this trend may lead to the reduction of the prices of older properties going forward.
Leisure and Automotive Become More Profitable
The increasing business rates, the growth of ecommerce, and the high employee cost are some of the factors that are currently weighing on the minds of the majority of retailers in the country. The retail sector is one of those that are polarizing into ‘convenience’ and ‘experience.’ Since the political storm cannot eventually interfere will all the business ventures, pubs, leisure, and roadside retails will remain highly appealing to investors in case the political climate do not change soon.
Many people will be able to buy music instruments and equipment from ecommerce platforms. Karaoke Bananza and online vendors offers the items that people can use to start their own entertainment businesses or for personal use. As people change their purchasing behavior in this manner, the prices of property will likely continue to increase.
The UK property market is continuously transforming, especially with the uncertainty that comes with the politics around Brexit. The ever-changing taste of consumers, demographic structure, as well as advances in technology also has a direct influence on this. The above trends and stories that experts focus on are essential and should not be ignored. They will influence the real estate market and the operations of real estate agencies in one way or another.