The UK property market has seen some pretty major shifts in recent years, from fast-rising prices to sudden stagnation as well as changes in buy-to-let legislation and barriers to mortgage approvals. With this in mind, what will next year look like?
Fewer Buy-To-Let Mortgages
With greater restrictions and stricter tax complications, mortgaged buy-to-lets are certainly set to go down. Some say by as much as 23% by 2023. So what does this mean? It means fewer one-off landlords looking to secure their future through a single buy-to-let and more cash-rich landlords who own numerous properties.
After a stagnant year, house prices are expected to rise again after Brexit, especially in London and the South East. However, the market for selling will continue to be sluggish generally, which will mean most homeowners that are looking to sell will need to offer competitive price tags on their home.
Greater Rental Demand
On the flipside of that, rental demand will continue to increase thanks to high house prices, low wages and restrictive mortgages. So fewer landlords coupled with increased demand for rental properties can undoubtedly only mean one thing: higher rents for everyone. In London the cost of renting is expected to raise another 15% over the next five years. In some parts of the UK such as the South West, rental prices are expected not to rise so dramatically. The top letting agents Bath has to offer, such as pritchards-bath, will be able to help you get a property for the best possible price.
After a long period of low interest rates and only one small raise, there are expected to be a further two interest rate rises in the next year – one in May and one in November, although this is dependent on Brexit. A no-deal Brexit could mean that there is only one or possibly none next year.
As you can see, the year ahead certainly has as much uncertainty as the year that has just passed, and whether we leave the EU with a good deal or no deal will dramatically affect our economy. If you’re planning on selling, keep a close eye on the market. And if you are looking to rent, get in there quickly as good deals will be snapped up fast.