The property market, which was once an always solid investment, is now a much less sturdy ship. With a combination of Brexit, budget changes and demand for housing, the property market this year could go through further changes which affect everything from house prices to the sizes of landlord’s property portfolios. If you have any questions about property insurance then give the time a call on 01202 801 782 or head here for our full contact details.
UK Prices Fluctuating
Trying to predict the UK property market at the moment is a difficult task that even experts are struggling with. Brexit, causing economic uncertainty, has led to a tumultuous property market which just about managed to hold firm across 2017. We don’t expect this fluctuation to end anytime shortly, at least not until more is known about Brexit and the conditions of the UK trade deal.
Experts are predicting prices to rise, but on the lower scale of between 0-3%, staying in line with overall inflation. The London market looks set to further plunge, at around 0.3% compared to the prediction that nationwide prices will increase by 1.3%.
Ultimately, it seems more of the same in 2018 as the industry reacts to news from the negotiations in Brussels. Will this year see us gain more closure and stabilise our market? Only time will tell.
More Houses to Be Built
The government have been setting high expectations with their most recent budget, claiming they’ll build 300,000 new homes a year. This will be huge for landlords, first-time buyers and the overall competitiveness of the property market. 217,000 houses were built last year (up 15% against 2016), the first time the Government had met their often ambitious targets for new housing across the UK. With a target to build one million homes by 2020, it’s clear that these targets aren’t going to be getting smaller any time soon.
But is all of this achievable? Recent reports have highlighted a skills shortage which could mean the Government miss out on this year’s target. Other issues, such as availability of land, are seriously denting the confidence that at some point, 300,000 homes a year will be being built. The skills shortage is the most worrying, with a lack of skilled workers at its highest level since 2007, not ideal when targets are at their highest point.
Either way, you can guarantee there will be plenty of new homes being built across the year. So keep an eye out for growing areas with investment potential, it could be a dream for landlords across the country.
Budget Changes To Affect Property
There was plenty of attention on property in Phillip Hammond’s Autumn Budget, with key changes to come in to place across the entire market. For landlords, there are looking to be added benefits for encouraging long term tenancies for additional security and to try and prevent the rapid changes in the rental market.
There’s also increased pressure to stamp down on unoccupied properties, with local authorities now having the power to increase council tax premiums from 50 to 100 percent on empty properties.
Another positive for landlords is the Government’s plans to ensure history of paying rent on time is recognised within rental scores and mortgage applications. This would undoubtedly increase the likelihood of rent being paid in full and on time, as it could have long term detrimental effects if not sorted.
Support For First Time Buyers
The biggest piece of news from the Budget was arguably the reductions in stamp duty for first-time buyers. This move should save four out of five first-time buyers up to £5,000, though sceptics believe this could just see house prices rise and first-time buyers could be further away from stepping on to the property market. How this will go down remains to be seen, though it is a vital change to a much maligned policy.
Across the rest of the Budget we will see improved funding across the entire housing market, a focus to improve house building in city centres and strong travel links as well as improved borrowing caps for local authorities. Overall, everything points towards improve housing availability and, hopefully, affordability.
Contact Coversure Poole Today
We hope the above has given you an idea of what is happening in the world of property this year. Want to speak to us about your property insurance? Then get in touch with us by calling 01202 801 782 or head here for our full contact details.