Due to the current uneasiness of the British political climate and recent market shifts, the UK property market is experiencing significant slowdown during what should be a prime buying season. Buyers are generally investing into existing properties instead of purchasing new ones, in part due to higher stamp duties. Property values overall declined after the EU referendum. Rising inflation and weak salary growth are also contributing factors to the slower market. However, the UK property market is expected to recover by 2018, although London may have a slower route to recovery.
Key Takeaways:
- UK Real Estate Market is expected to decline in 2018.
- Housing prices are growing higher than the rate of wage growth and few new properties are coming on the market to lower housing costs.
- Cost of living is also impacting the ability of people to afford housing.
Fix costs, such as tax stamp, are also adding to the difficulty.
“Property values declined after the outcome of the EU referendum was announced, which resulted in a new average property value of £214,140. The number of new homes registered on the market also decreased, with a drop of 62 percent in London and 15 percent across the rest of the country.”