The UK property market can be very volatile, and right now there are lots of factors affecting it. Firstly, political and economic instability following the Brexit vote has took its toll on the market, halting some foreign investment and preventing homeowners from putting property into the supply chain. However, with a number of infrastructure improvement projects in the pipeline and a surge in demand, investors and developers need to act fast to secure good future returns.
Changes in the modern way of living are having a noticeable effect on the housing market. For example, a rise in the divorce rate and the fact that people are living longer have increased the number of single occupancy households, and the lack of affordable housing is pushing more people into the private rental sector. Moreover it’s not just residential property which is affected by contributing factors; here are some of our expert predictions for the 2018 property market and beyond.
It’s hard to believe that ecommerce could have an impact on the property market, but as Britain’s shopping habits change so do the needs of retailers. Online spending is continuously increasing – in September 2017 it accounted for 17% of all retail spending in the UK. Customers now expect same or next day delivery on items bought online, which has driven the demand for industrial spaces and warehouses across the country. The industrial property sector is becoming a key player, offering above average returns in the right location.
HS2 & Crossrail
Transport links are very important for property prices – being located near a tube station in London can up the value by thousands, while often properties near noisy airports can be negatively affected. Two major infrastructure projects have drawn the attention of investors and commuters alike – HS2, which will connect London to the Midlands and the North, and Crossrail which will improve the journey into London from the east and west. This may open up new commuter hubs for people who work in the capital, and as an example house prices in Abbey Wood where the line passes have risen 71% since 2009.
In terms of the residential market, commuter hotspots dotted around the capital are changing. The expense of countryside living near to London, along with a rise in companies allowing staff to work from home, is starting to melt away some commuter hubs. People are moving out of London as far as Edinburgh in order to enjoy the same space and countryside for much lower prices. It may be a super commute, but most people only have to do it once or twice a week and it usually costs the same as a season ticket from the capital’s suburbs and commuter towns.
Check out the blog for more property insights or get in touch with our property experts today if you’re planning to invest in 2018.