The UK housing market is looking at a turbulent year ahead. Numerous complications have arisen due to political and economic turmoil, and these have directly impacted how the British public view the housing ladder. Moreover, a few social influences have crept in too, once again determining if and how people move into new property.
Consequently, here are some of the challenges the UK housing market will be dealing with in 2019.
Brexit
Brexit is most certainly affecting how people are viewing the property market. Brexit means uncertainty nationwide, and most people don’t enjoy the sense of gambling or risk when moving to a new house. They need safety, security and assurance; three things Brexit hasn’t guaranteed for many people.
When people aren’t confident, they don’t hand over their money; it’s really that simple. Living costs are already high, and most predict they’ll get even higher still. Therefore, the last thing people need to be doing amidst all this uncertainty is investing large portions of their hard-earned cash into property. Instead, they’re more likely to be found saving and stockpiling.
No Supply, No Affordability
Other reports indicate a far bleaker scenario for the housing market. The BBC published an article suggesting that the housing market outlook is the worst it’s been in two decades, with lack of supply and affordability being the main issues addressed. Also, people are more comfortable extending their current properties if they’re strapped for space, rather than buy a completely new property.
The average UK housing price has been steadily rising since 2009. Today, the average property stands at a cost of £230,630, which is not within many people’s budgets; especially in the case of first-time buyers and starter homes. When no one is buying, supply also starts to wane, leaving a bottleneck scenario. Both buyers and sellers are stagnant in a stalemate situation, and neither party is willing to budge.
In these kinds of situations, companies like Andrews help buyers to find the property that’s right for them and their budget, in a quick and efficient fashion.
Confidence
There are rays of hope in certain areas of Britain. For example, London reportedly has a 25% proportion of active buyers, which all things considered, isn’t too bad at all. Of course, the mild successes of one region isn’t necessarily replicated nationwide. London is a very popular city, and if there’s any money or opportunity to be found in Britain, it’s generally in the capital. Moreover, London is often home to the headquarters of many businesses, meaning more job opportunities and thus, more money to go around. The same isn’t true for everywhere.
None of this dispels all the crippling factors affecting property value across the nation; the number of elections and referendums that cause seismic shifts in the economy, taxation targets, business closures and job losses and of course, Brexit. These influences are far reaching in the UK property market, and will remain so for some time.