Property investors report that 2017 was a favourable year for investment in the UK. However, ongoing Brexit negotiations alongside major tax changes are fast creating worry about how the market is going to behave. These factors have a big role in influencing the behaviour of the property industry.
Are house prices going to halt further into 2018? How does technological advancement feature in the property industry? These are the questions running through every buyer’s mind. So, what are the important factors that home investors should look for? Here are some expert predictions on the key themes expected within the next 5 years.
Technology was on the rise in 2017, which led to many property companies digitalising their operations. This trend is expected to continue with most companies integrating their systems using advanced technology. Artificial intelligence and automation of operations are highly desired to keep processes running efficiently with the ultimate aim being to maximise profits.
Property Prices Around London Set to Increase
2016 witnessed major improvements in infrastructure – in particularly, HS2, Thameslink and the second phase of Crossrail development which is set to continue. The result of this has been a reduction in the time taken to commute to the capital thereby making the surrounding areas more viable alternatives for those working in London. Prices in the surrounding towns are set to rise further throughout 2018, therefore any investor eyeing these towns should act swiftly before prices start shooting.
House Price Predictions
House predictions are very difficult to get right, this is largely attributed to the effects brought about by domestic economic uncertainties. Major world events also play a crucial role in determining prices in the property market. The unstable political stability and the ongoing Brexit negotiations, in particular, are the major factors giving property investment experts a hard time in making 2018 predictions.
However, according to the Rightmove house price index, prices are set to rise in 2018. If the predictions are correct then they’re set to rise by 1% in 2018 which is a positive even though it will be a slow growth, hence investors might want to consider making purchases in anticipation for a future rise in prices. As a result, buyers are looking to purchase in international destinations and can even benefit from credit rewards for extra bonus points when they travel.
Increased Rental Demand
Just as property prices are set to rise, the number of tenants are equally projected to escalate. It is forecast that by 2025, there will be a 600% increase in the population of Londoners who will be renting properties. This is made up of the people who work in London and its surrounding areas.
This explains why there is a high demand for rental properties and the UK’s buy-to-let market is overwhelmed. This means that if you purchase a property that is strategically located, you are likely to attract a lot of interest from either selling it on or renting it out.
Despite the uncertainties with the prevailing conditions in the UK such as political instability and Brexit negotiations, there are lots of good things to expect in the next few years to come. If you are interested in property investment then strike a great deal as soon as you can.