A look at the potential trends and key points on what will affect the Housing market in England and Wales in 2018.
- Interest Rates will stay low.
- Online Continues to Grow
- Stamp Duty Cut
- House Building will rise.
The property market is a complicated place, the state of the industry can fluctuate every month and though it seems prices will always rise, which is not necessarily a negative as higher house prices can show how the local economy is doing, it is important to understand how to tackle the property market. With the help of some key trend reports and articles, we show how the market could play out and what positives and negatives there are for renters and homeowners.
House Buildings will rise
One of the biggest problems of rising house prices is the lack of New homes being built. So, the value of already built houses increase but not in 2018. From the 2016-2017 fiscal year, new home Building has boomed with 217,000 new homes built, however, with the target of 300,000 set by the government, that figure is still lagging. Further evidence points to migration numbers with EU net migration falling over the last year and the construction industry growing by 0.9% in Quarter Apr-June 2018.
Online will continue to grow
Thanks to the internet, finding properties is easier than ever, now that you can buy or rent a home from just your smartphone, putting a lot of power into the buyer's hands. Online agents increased their market share by 11% during the first quarter of the year which shows that buyers want simpler and easy ways to buy or rent their homes, now that how you buy a property is being disrupted. This will allow more power for the buyer offering them more choice and a far easier experience.
Interest Rates will stay low.
With the bank of England, hiking rates a small 0.25% to 0.75% the knock-on effect on repayments will be not be noticed due to a large portion of homeowners on fixed rates. And, with the weak pound, there are not any expected hikes in inflation.
Stamp Duty and Help to buy
With Stamp Duty abolished for all properties up to £300,00 bought by first-time buyers, this move could save up the buyer up to £5,000 a year. The help to buy scheme continues to assist first-time buyers and offering a £10bn boast until 2021. Though there are stark critics of the scheme with arguments that they give more financial assistance to property builder than buyers, this argument is refuted by the government.
Overall there seems to be some positivity when it comes to the property and housing market, prices are slowly declining with more and more housing being built, so the demand is slowly being supplied, the assistance of cutting stamp duty and continues support of help to buy offers some hope for first-time buyers.
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All articles and trend report below.