With 2018 now underway, property specialist Leaders has looked ahead to the year ahead and revealed its belief that the next 12 months will prove to be positive, albeit challenging, for the sector.
Allison Thompson, managing director at Leaders, says there are plenty of reasons to be confident, whether you are planning to sell, let, buy or rent in 2018.
“Despite some experts predicting the property market would suffer in the wake of the Brexit vote and the uncertainty caused by a general election, quite the opposite has been true. 2017 actually saw growth in house prices across the country and a renewed sense of positivity.
“We expect this to carry on through 2018 and for a variety of factors to combine to make this year an extremely successful one. Prices will continue to rise, making it a great time to sell, tenant demand is set to remain strong and recent changes to stamp duty payments will encourage more people across the country to get moving.”
Allison has made three predictions of key trends she believes will come to define the property market in 2018:
1) House prices and rents will continue to rise
While there has been a softening in house price increases in recent months, the outlook for the market remains positive. A lack of supply will ensure properties remain in high demand and prices continue to rise. Leaders anticipates growth of between four and five per cent nationally in 2018, with some hotspots – such as areas that are commutable from London – likely to experience even greater increases. It will be a similar story in the rental market, where high demand will continue to push up rents and provide landlords with an opportunity to enjoy a good return on their investment.
2) More people will get moving
The government’s recent announcement that it is scrapping stamp duty for first-time buyers will have a huge impact on the market in 2018. By making it more affordable for first-time buyers to get on the ladder, Leaders expects the entire market to get moving as a result. Demand continues to outstrip supply in the rental market too, with the company predicting this year will once again see a number of applicants competing for each available property to rent.
3) Brexit negotiations will determine market confidence
The great unknown in 2018 is the Brexit negotiations between the UK and the EU, with nobody yet sure how these will play out. The housing market can be sensitive to confidence levels, which are likely to be either positively or negatively affected by progress in talks between the two parties. While Brexit is unlikely to have a major impact on the UK property market, progress could lead to more people being willing to move while problems may result in reduced affordability that encourages people to stay in their homes.
For more information or advice on selling or letting a property contact your local Leaders branch.