You may remember hearing the predictions for the UK’s property market this time last year. Naturally, the drama surrounding Brexit had made people very nervous when it came to property investment, and many media sources predicted that the property market would suffer. Needless to say, last years expectations were slightly off. Below is what really happened to the property market in 2018 and what the experts of the industry forecast for 2019.
The Brexit Barrier
Understandably, some investors have held off from purchasing property due to the lack of information about the EU agreement. Yet waiting patiently for Brexit clarity isn’t an issue for others. A selection of experts from across the country believes that the start of 2019 might be a slow one for the property market and that once all of the Brexit drama has concluded it will start to stabilise. Other property professionals believe that this really isn’t the case and that regardless of the end result in terms of Brexit, the housing demand in the UK is too high to put off investors.
The Highs And Lows
Property prices are expected to grow by at least 2.5% this year with some regions reaching a 5% growth. A lot of experts are certain that these figures accommodate the possible Brexit outcomes. That being said there are whispers of price drops in central London which could drop between 2% and possibly even 5%. For London, property investment has decreased significantly. However, this could be due to people and large companies fleeing to cities that are more cost-efficient. 2018 seen several corporations announce new headquarters in locations other than London such as HSBC’s move to Birmingham and the BBC calling Manchester their new base. Rumour has it that even the likes of Amazon are searching for a new headquarters in Manchester.
The Letting Market
Though there is a prediction of price falls for central London this year, the rental market is expected to see a 1.5% rental price growth. It is widely suspected that the buy to let market will remain mostly stable for 2019 with a gradual increase throughout the year. For investors that aren’t wanting to hang around, there are definitely some major deals and opportunities to be found it’s just a matter of knowing which area to invest in.
The North Vs The South
During 2018 the great northern cities started to see all of their investments and regeneration projects pay off. Heads were turned toward the north and all it had to offer with many people jumping at the chance to grab themselves a spot in the country’s hottest investment cities. As it stands the north along with South Wales, and the Midlands are expected to continue to blossom in 2019. Even Londoners themselves are looking to relocate to the Midlands thanks to the convenience of the HS2. Birmingham has a lot going on in preparation of the 2026 Commonwealth games, and with huge development plans, underway both rental yields and property prices are expected to rise.
As the property market continues to battle its way through the fog of confusion caused by Brexit, investors are starting to make their way over the speedbump. Putting all the uncertainty aside the year ahead is looking much stronger and has a lot of exciting developments on the horizon.