With the Bank Of England recently announcing that house prices could fall by up to 30% if we concluded Brexit with a no-deal, there is a mist of uncertainty in the UK property market for homeowners, property developers and potential buyers, leaving the property market relatively subdued. Although just like the weather the property market is hard to predict, based on what we know so far we have put together our predictions for the UK property market in 2019 to try smooth out some of the uncertainty.
Firstly, it is crucial to take the recent statistic from The Bank Of England seriously but understand that this is a worst case scenario prediction, taking this figure at face value only adds to the hype and drama that an article like that creates. However some experts say is unlikely to happen. There is however expected to be a decline in house prices throughout the UK in 2019, with London house prices feeling the pinch first and regardless of the outcome of Brexit, some say this is the result of the cyclical nature of the property industry which some economic forecasters predict to happen every 10-15 years.
For first time buyers who are classed in the millennial bracket who have been priced out of the property market for far too long are likely to benefit the most should house prices fall in 2019. And whilst many reports paint a bleak picture for existing homeowners, the future is realistically not as doom and gloom as some would have us believe. Typically the value of a property is dependant on what someone is willing to pay for it and in that respect most house prices will be relative. This means that as a homeowner if you are looking move at a time when house prices are decreasing, you are likely to sell your home for less than you were hoping for but equally you are also likely to be able to buy your next home for less as well.
The uncertainty that follows Brexit is of course having an impact on supply and demand within the property market with many choosing to hold fire until a deal has been made, due to uncertainty and in many cases fear of the unknown. However in the next coming weeks and months and into 2019, as Brexit deals are finalised the uncertainty will fade and movement within the market is likely to change with buyers and sellers alike feeling more secure.
Finally, Investors able to take a risk and invest in these uncertain times could look to gain larger margins. On the other hand investors who have already invested in the property market, may want to consider sitting tight and waiting for the right time within the natural cyclical process that is the property market before they sell up, in order to get the best return on investment. Perhaps instead, investors may want to consider concentrating on adding value to their current property portfolio by adding extensions and renovating.
If you are considering starting a renovation or build project why not let us help you. Byoot provides a full turnkey solution to our clients, from planning, architects, structural engineers, building control and the build, leaving our clients to focus on their day jobs while we do ours. If you are thinking of extending, renovating or improving your home speak to one of the team on 0208 4509185 or send us an email at email@example.com