19th Dec, 2016
Following the UK’s decision to leave the European Union, it’s fair to say that the housing market hit a slight bump in the road. For a couple of months, housing sales fell as people were uncertain of the country’s economic conditions. But, as the Bank of England decreased its interest rate to a record low of 0.25% – and mortgage rates subsequently dropped – things have improved.
In fact, in November, house prices edged up by 0.2%, due to rising demand.
So, even though market indications and our own experience signal that things are on the up (we’ve had a record breaking year!), it’s still a difficult task to predict what will happen next year.
However, as we look ahead, there are a couple of considerations that are likely to affect renters, buyers and developers alike.
For example, the Chancellor pledged £40million to the Build-to-Rent scheme in his Autumn Statement. This translates to a boost of 2,000 new homes in key cities across the UK, which should be ready within the next few years.
This will enhance a sector that is already showing signs of investment, and could grow significantly in years to come. The amount of high quality homes available for rent in the private sector is therefore bound to increase – a positive for young professionals looking to move out of a family home or shared accommodation.
Amy Wray, our managing director said: “Young, skilled people are increasingly looking for purpose-built homes that meet their needs, without them having to buy or save up for a hefty deposit.
“So, any developers that want to invest in rental property should look for land opportunities suited to this market.”
And, if you’re a home-seeker, there could be positive news for you too! House price growth will be ‘subdued’ over the next few years, due to a slowdown in the number of new homes built, according to property group JJL.
But, the company also predicted that by 2018, confidence in the market will have increased because there will be greater certainty over the direction of negotiations.
So, coupled with the current low interest and mortgage rates, 2017 could prove a fantastic time to buy a home – whether you’re just getting on the property ladder, or moving up it.
If you are looking for your next home, it’s important to remember that buying is a long-term decision, so you need to think about your personal circumstances and whether you can afford to take on a mortgage, of course.
Nobody can be sure exactly how the market will pan out, but as long as you are sensible in your decision and still have enough money to enjoy life, then we see no reason why you shouldn’t buy or rent a property in 2017.
And if you are interested, then get in touch with our sales or lettings team to find out about the properties we have available:
Phone: 01484 682999
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