UK Property Market Report
The UK property market is constantly fluctuating and can be a difficult subject to understand. To make things easier, our property market report will help you understand the current property climate, whether it’s the right time to rent, and whether your home will be worth more or less right now.
The UK property market enjoyed a period of growth towards the end of 2017
The turbulent politics of 2017 left many homeowners and potential buyers wondering which way our property market would turn. And, according to the latest house price index as released by the Land Registry, the market has seen a marginal decline in recent months. Their statistics showed that the annual house price growth was at 4.5% in October, which showed a small decline of 0.6% from September’s statistics. This puts the most recent average UK house price at £223,807.
As you may have noticed, statistics can vary. However, because the Land Registry’s data is based on information from actual property sale completions as opposed to mortgage approvals or asking price data that has been gathered from online portals, it is the most reliable view of the UK housing market and its performance. This also means that the Land Registry releases its house price reports with a two-month delay.
Rental values have recently increased
In the more promising news, according to the JLL UK Property Index, rental values have increased by 0.6% over the third quarter (July, August and September). This has seen the first good annual rental growth figure of 2.2%, in the last five quarters. This is positive news for anyone who may be considering purchasing property for rent, or who may be looking towards renting out a current property.
How was the UK property market split?
The property market can have a large difference between the North and South, with London being the most expensive location to buy and rent property. According to the JLL UK Property Index Q3 (third quarter) report, London and the South East of England surpassed the rest of the country with a property return of 3.9% as compared to the 2.8% that the rest of the country saw.
What are the UK housing market forecasts?
As stated by the JLL residential forecast, the UK housing market is going to experience a slower state of growth than what has been seen over the last 20 years. Major factors in the increasing growth of the UK housing market included an expanding population, low-interest rates and the relative affordability to incomes. However, with these factors all plateauing, we’re expecting to see this reflected in the property climate. The UK’S decision to leave the EU will also factor into a weaker market.
Statistics have led JLL to forecast that 2018 and 2019 will see a marginal growth in the housing and rental market with a prediction of just 1% house price growth in 2018 and 2% in 2019. The rental market is expected to remain slightly stronger during this period, however, rental growth will also be weaker than expected at around 2% per annum. Interestingly, alongside other factors, this slow growth is predicted to also contribute to a stronger house price growth outside of the London and South East Region. This is exciting news for the rest of the UK and may see house prices begin to catch up to these more expensive areas.
What does this mean for you?
The current property climate and housing forecast will affect people differently, depending on their circumstances. As the next year appears to have a marginal growth in UK house prices as compared to recent times, but a stronger property rental market, investors are more likely to be inclined to buy to let, rather than buy to sell. This may also influence long-term tenant decisions, giving them an incentive to get on the property ladder and become a first-time buyer as house prices face smaller and slower growth. For homeowners who are considering in moving forward and placing their property for sale, this news shouldn’t affect their decision too much, as we can expect property prices to hover around their current prices, although the prospect of rental may now be more appealing.
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