Factors Influencing The UK’s Property Market 2018
Up until recently the property market in the UK hasn’t favoured first time buyers or tenants with extortionate house and rent prices across the country. However, this year with political and economic instability due to events like Brexit, things may be looking up for UK’s first time buyers, but perhaps property developers and landlords may not say the same…
1. Thank Brexit
Since the brexit vote, the property market has and is predicted to continue to see a halt on some foreign investment. This in turn will prevent homeowners from being able to put property into the supply chain affecting the property ladder this year.
2. Low Interest rates
Although the economy is currently weak, another 0.25% hike is expected in Spring, which will take the Bank of England base rate to 0.75%. So, what does that mean for you? It may not mean much for you if you’re a homeowner on a fixed rate for your mortgage. However, the hike does mean that it will add any additional £22 to the usual £175,000 tracker mortgage. Yet, mortgages will remain relatively cheap, but with inflation most homeowners will find paying off their mortgage as a struggle.
4. Greedy Landlords Are Predicted To Struggle
After years of what some may see as unreasonable rent increases, landlords are finding that they can’t get any more money off tenants any further than they currently are. In 2017 the average UK rents rose by less than 1% and fell in London. As inflation affects salaries this year, it’s expected that there will be few rent increases across the UK in 2018. And, with the new ban on letting agency fees coming into place in 2018, things are looking easier for Tenants.