Brickowner’s half-year property market round up 2018
A quick summing up of the news and trends that have been of interest in our property market roundup.
The property press has been banging the same drum, continuing to paint a depressing and gloomy picture of the property market, with the top end of the London market experiencing a correction as concerns over Brexit have seen a reduction in overseas investment. Overall according to Zoopla “The value of Britain’s housing market has fallen by £26.9bn or 0.33%” (see Table)
Regional value changes since Jan 2018
|Region||Jan value||July value||% change|
|North East England||£182321||£188351||+3.31%|
|South East England||£406066||£406206||+0.03%|
|East of England||£356572||£354972||-0.45%|
|North West England||£194779||£192614||-1.11%|
|South West England||£307839||£300123||-2.51%|
|Yorkshire and The Humber||£178805||£175022||-2.12%|
On top of these concerns, other contributing factors include a surge of new properties coming to the market in July (up 8.3%) potentially due to the new BTL tax changes, however, some believe that the signs of recovery are coming soon, with the market presently bottoming out.
However, there are still good profits to be made, strong property returns from capital growth in the North East of England have seen an investor return over 3% during the first half of 2018. Most recent reports highlight UK property as being in “recovery” which signals a return to healthy growth. Even Savills with their pessimistic outlook- projects house price inflation of 14.2% over the next five years. Furthermore, developers seem to be maintaining healthy value appreciation which is probably why the UK’s love affair with property as an investment option shows no sign of wavering. (see graph and explanation from Savills below)
Savills most recent report highlights the good news that we’re heading in the right direction. New home building added £62 billion to the value of UK housing in 2017. That’s more than any other year since 2007 – even accounting for price inflation of previous years’ stock since it was built.
None the less lack of affordable homes continues to contribute to the housing crisis underpinning prices, keeping home ownership out of reach for 2 million families. The lack of affordability ensures that the bank of Mum and Dad will spend £57bn this year making up the gap.
Having been full of scepticism and reservation, the property industries attitude towards PropTech now appears to have changed somewhat, “Property professionals now View prop tech as an opportunity” one cannot help but feel that they are a little late to wake up to the rise of tech one study showing that 7000 estate agents show signs of financial distress