2017 has been a year of changes and uncertainty for the UK property market. With house prices set to rise across the UK as well as with Stamp Duty cuts for first-time buyers, 2018 is set to keep us on our toes. So what does 2018 have in store for the housing market?
More stability in 2018?
The UK property market is set to remain relatively stable in 2018, although the number of people buying properties may fall slightly, according to forecasts released by the Royal Institution of Chartered Surveyors (RICS).
House prices predicted to rise by 1% in 2018
Looking at the overall picture for this year, Rightmove’s latest report depicted a promising year for the UK housing market, projecting a 1% growth in asking prices across England and Wales.
Demand and supply imbalance
Demand is still set to outstrip supply in 2018 as the rate of new building is not expected to gather enough pace over the year to catch up with previous shortfalls, as reported by Rightmove. The imbalance between supply and demand in the housing market is likely to ensure that house prices remain robust throughout 2018.
Regional cities to boom while London slows down
Most regional cities in the UK will see house prices edge higher, apart from East Anglia, the North East and the South East regions, according to RICS’ latest report. The strongest gains will likely come from Northern Ireland, Scotland, Wales and the North West of England, highlighting the powerful attraction of the Northern Power House cities. While London house prices are growing at a slower rate than the rest of the country, all the main indices still report that house prices continue to grow across the UK.
The impact of Brexit
The outcome of the Brexit negotiations is likely to have an impact on the housing market in 2018. Brexit developments will remain important, but are currently hard to foresee.
Our Associate Director Stan Tonchev commented: ‘No matter the outcome of the Brexit deal, we are confident that the UK will continue to top the list of the most sought-after property investment destinations in Europe. Looking ahead, given the current market conditions of low stock levels of properties for sale combined with increasing employment levels, it can reasonably be expected that house prices will continue to rise in 2018.’
Looking to invest in property in 2018? Call the Kingsley Hamilton Estates team today on 020 7078 0214, or email firstname.lastname@example.org and we will be in touch shortly.