Looking at the real estate forecast for the UK in 2018 is to look at a mixed bag of outcomes, with London predicted to see a continued drop in property sales as the year goes on.
This is due to a number of factors, both physical and financial. Property prices have swollen in the region, which combined with the lower number of new build properties available means people are looking to take their money elsewhere. But London’s loss is the North Wests gain.
Indeed the Fitch Ratings predict that the UK is one of only three markets where an increase in overall house prices are not expected for 2018. The other two being Greece and Norway – but a lack in overall house prices rising does not take into account regional differences. As Londons real estate market is contracting somewhat, there is an equal and opposite gradual compensating expansion of the housing markets in places like Wales, Scotland, Northern Ireland, and the North West. This too applies to foreign markets as well, with more and more people opting to purchase a second home abroad. There will be far more people looking for Villas for sale in Moraira in 2018 for example, than houses in most areas of London.
What It Means For Real Estate Agents in the North West
These trends and forecasts mean that 2018 and beyond should be a buoyant and profitable time for real estate agents catering to both domestic and foreign property investments, with a rise in both first time buyers as a result of a shrinking buy-to- let market, and continual growth in numbers of people purchasing a second home abroad. The average median asking price for a home in the North West recently tipped over the £187,000 mark, indicating the continual rise of interest in the regions as more and more people find London to be too expensive and seek better value for money in other parts of the country, or even in a sunnier climate. Prices are going to further be propped up by a general lack of available properties for people to buy, which again may be an influencing factor in the appeal seen by many in investing in a second home abroad, either as a holiday home or to let as an additional income. The drop off in the London markets means also that there is going to be a continuation of the establishment of the trend of more people investing in other areas of the country. With people looking to get more for their money and casting their net further afield, the North West is going to be a prime location for wealthy professionals and investors looking for a second property.
Overall the takeaway is that through 2018 and beyond, London’s loss will be the North Wests gain, with consistent growth expected for this year and the years to come.