14 Dec 2018 Property Market Forecast
The end of a year always signals that it is time to look ahead at what’s to come. We may be finished with 2017 and all its tumultuous events but 2018 is about to begin and it pays to be ready! Barton Wyatt have been spending some time predicting what the property market may bring in 2018, taking into account political and cultural events, to explore what may happen in our industry.
THE UK PROPERTY MARKET
Overall, it’s pretty hard to forecast what’s going to happen over the next few years because of Brexit and our currently rocky political climate, but that doesn’t, by any means, make us think that next year’s going to be a tough one for property. The aftermath of Brexit proved that anything can happen! Everyone, even us, expected European events to knock the property market, but in fact it’s remained steady and reasonably active since the Country decided to leave the EU.
With all these things considered, we expect to see a price growth in UK property of around 2%, not dissimilar to this year’s 2.5%. This isn’t exactly headline grabbing (particularly as inflation will probably run at a higher rate), but it’s keeping that line moving in the right direction when, in reality, there’s a lot going against it. It just shows that us Brits will keep on going no matter what’s going on! Investors will continue to invest – our buy-to-let Landlords continue to be interested in expanding their portfolios – and buyers will continue to buy and our nation will carry on like we always do.
A lot of the focus next year is going to be on London, as this is the one place where we and many others expect price growth to actually suffer a little in certain prime central areas. In the best outcome, we would predict no price growth in the capital, and in the worst case we think there’ll be a drop of about 2-5% in house prices. This is because of the city’s ever-increasing living prices and unfavourable lifestyle pushing people to leave and find their home in surrounding, cheaper areas. We don’t expect to see any positive growth in the city for the next few years at least.
SURREY AND THE SOUTH EAST
The market predictions for Surrey and the South East are favourable for 2018 and we’d be very much surprised if growth in prices wasn’t seen. We expect prices in these regions to increase slightly above the rate of the country’s average of 2%. This is great news all-round. Surrey will continue to see high demand from buyers – especially those moving out of London and moving in from abroad.
At Barton Wyatt, we feel confident about 2018, being certain that despite the UK’s odd position in the world at the moment, the property market will remain moving in the right direction. If you want to get ahead of the game and start looking at property in Surrey and the South before the New Year, get in touch with us at Barton Wyatt.