12Nov

Real Estate Market Trends in the UK That Investors Should Be Aware Of

Investors in real estate need to keep track of various trends shaping the market to maximise their investments. At the moment the real estate market is currently going through an upheaval. This will impact female investors in both positive and negative ways. Here are the most recent trends that investors need to be aware of, and how female investors can take advantage of the current climate.

The country’s impending divorce from the European Union is causing a ripple effect in the housing market. Experts have told The Guardian that uncertainties over Brexit are negatively affecting the property market, and these are invariably impacting real estate-related trends.

One such trend is the precipitous decline in buyers, which is quite surprising given the continuous drop in house prices in the south, including London. This drop, predictably, is being blamed on the uncertainties surrounding Brexit, with East Sussex estate agent Michael Brooker telling The Guardian, “The Brexit effect is really depressing the sales market.” Curiously, these concerns seem confined only to the south, as property markets outside the region have been quite vibrant. However, investors should note that the Northern Ireland real estate landscape is robust despite the Irish border issue being one of Brexit’s thorniest issues.

Another trend worth keeping tabs on is rising tax rates, which the Independent reports are battering landlords. These tax hikes have forced the hand of landlords, whose choices presently are to either scour the north for affordable properties that incur lower stamp duty or hold off on buying properties altogether. And recent data suggest that more landlords are likely choosing the latter option as they have spent 30% less in the first half of 2018 as compared to 2015.

The good news though his that this particular trend, in turn, is opening up the real estate market in London. The Week reports that there is now a market gap in the London property market created largely by the apprehension of landlords to buy properties in the city. At this point, the field is pretty much level (or close to level), giving new buyers a unique opportunity to get into the real estate market. In this regard, first-time buyers are best served perusing the real estate investing advice previously posted here on Nell Gavin. The takeaway is real simple: Anyone can invest in real estate, but they will have to start somewhere. And at the moment the market gap in London looks like an ideal start.

With the overbearing impact of Brexit creating a ripple effect on the UK property landscape, it is even more crucial now for investors to keep track of the overall health of real estate in the country. The UK’s housing market is covered on FXCM’s economic calendar, through the mortgage approvals published by the British Banker’ Association. The site notes that “mortgage growth represents a healthy housing market that stimulates the overall UK economy”. For investors, checking if the reading is bullish or bearish can give them a good indication on where the market is heading. As of now, the housing market is currently bearish, and the trends outlined are indicative of this so far negative outlook.

Just as notable is how the real estate climate is beginning to become much more favourable to women given the way the competition has opened up due to the factors discussed above. The rising number of female-centric organisations — Women Talk Real Estate is a prime example — creating niches in the real estate landscape is now making it much easier for women to enter the market and reap the rewards. The Gemma Young-cofounded and London-based site Settled is helping in this regard as well by providing an online selling solution for new real estate investors. This will help break the mould of the traditional way of buying and selling homes, which is stacked against new investors, especially female investors.

Quite simply, the UK property market is in flux, and it is almost impossible to predict how it will be months from now. It can turn bullish one week, flat line the next, and turn bearish just as quickly. Ultimately, though, the looming shadow of Brexit will shape the UK property landscape — for better or for worse. That is why investors will need to monitor the situation as astutely as possible.

Leave a Reply

Your email address will not be published. Required fields are marked *

My website uses cookies to deliver gather statistics and show relevant ads to my visitors. By using my blog, you acknowledge that you have read and understand my Privacy Policy. Your use of NellGagin.net is subject to these policies and terms.