As the year draws to a close, many property developers already have their eye on 2018. With the uncertainty of Brexit still looming over the UK, it’s hard to say with supreme conviction what to expect from the property market next year. Other factors such as the rising divorce figure means that many more people are choosing to live as single occupants, boosting the need for housing and increasing the volatility of the market. But what does this mean for developers? Read on to find out the key trends for the property market in 2018.
A rise in rentals
With house prices continuing to soar, it’s likely that we’ll see an increase in the amount of private rental properties next year. The reason for this is that, regardless of schemes set up by the government such as Help to Buy, people just aren’t earning enough money to put down deposits. This has been made even worse by the recent predictions that wages in the UK are set to stagnate for a further two decades, driving up the cost of living and making it even more difficult for people to get their own property.
Increasing house prices
Despite Brexit, prices are set to continue to rise. Recent predictions show that the cost of buying your own home is set to increase even further by 2019, mainly due to a lack of supply. This makes life difficult for property developers who want to get a foothold in the market, with many hesitant to approach the bank for a large loan to cover the cost of developing a new property if they feel that there isn’t anyone to buy it.
Transport
Another trend that we’re likely to see in 2018 and beyond is the increasing effect of transport on the property market. Huge new projects such as HS2 and Crossrail are, in theory, going to provide greater connectivity for the UK, which will open up new commuter hubs across the country in places which weren’t previously considered by people working in places such as London or Manchester. This will, naturally, push up the prices in the surrounding area and affect the local economies that become new commuter towns.
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