Marketing No Comments

House prices in the UK are now falling – which is great news

House prices in the UK are now falling.

In the three months to the end of January, prices fell by 0.6% compared to the previous quarter, according to Halifax.

And on an annual basis, prices were up by less than 1%. Which means they are falling in “real” terms (ie after inflation).

It’s good news if you’re in the market for a house. And it’s good news if you think Britain could do with being a little less property-obsessed.

But will the good news continue?

House prices in the UK are in decline, however you look at it

The latest figures from the Halifax are actually a bit more upbeat than the last report from its nearest rival index, published by Nationwide. According to the building society, house prices rose at an annual rate of just 0.1% in January. That’s the slowest pace of growth in six years, and a “real” terms fall of more than 2% (depending on which inflation measure you prefer).

But one way or another, prices are flat or dipping.

This will be blamed on Brexit, because everything at the moment is being blamed on Brexit. But to be clear, this does not appear to be down to a massive drop in sales (“despite Brexit”, as the saying goes). In December, says Halifax, there were 102,330 house sales, which is “very close to the five-year average of 101,515.” Mortgage approvals are pretty close to the five-year average as well.

I’m not saying Brexit will have no effect. I’d be very surprised if we don’t at least see a “Brexit blip”, where people hold off making big decisions about moving until after a deal is done (assuming one does get done, of course). But the roots of the slowdown go deeper – put it this way, even if we had no intention of leaving the EU, I’m pretty sure the trajectory for house prices would be the same right now.

The fundamental problem for prices is that they went up too much. With banks a little more cautious on lending than they were during the bubble era pre-2008, and interest rates incapable of going any lower, prices had to hit a ceiling at some point.

On top of that, it has become much more expensive for certain groups of buyers to invest in UK residential property. Landlords are slowly having any tax benefits taken away from them, which has hugely reduced the appeal of property.

Indeed, I’m wondering how long it’ll be before the celebrity money interviews up the back of the Sunday supplements start to reflect this (when offered the choice between “property or pension” – a silly question on lots of levels – 99% still answer “property”, as you’ll see if you follow my colleague Merryn on Twitter – @MerrynSW).

But they’re not the only ones. Rich buyers of all kinds, but particularly rich foreign buyers, have been hit hard too – stamp duty on high-priced properties, plus an annual tax on property owned by companies (typically done by overseas buyers). As a result of all this, Savills reports that sales of properties over £5m have dropped by a third since 2014. More than anything else, this is what has hit the London market hardest.

What could make house prices crash?

Now that prices are falling, that tends to feed on itself. Just as in the stockmarket, everyone wants to buy at the bottom. When prices are rocketing, people panic to get in. When prices are falling, they take their time.

Yet, as I’ve said before, if the economy remains in decent shape, and employment stays as high as it is, it is hard to see any reason why prices would crash outright – to get a full-on crash, you need a large number of forced sellers, and at the moment, I don’t see an obvious way for that to happen.

One route to a crash is that people who own houses can no longer afford to keep them. This can occur in one of two ways. Either the mortgage holder loses their job (and thus their income) or interest rates shoot up, driving up the cost of all variable-rate home loans beyond affordability. These two are not mutually exclusive – indeed, they often go hand in hand.

But there is no obvious reason right now why we should expect a surge in unemployment or a surge in interest rates. There are scenarios in which these things become possibilities – a truly catastrophic Brexit for example, or a truly radical Jeremy Corbyn-led government. But for now those are low probability events.

The only potential significant contingent of forced sellers I can see is perhaps that subset of overstretched landlords who were taken by surprise by their tax bills this year. That is probably having some effect on the market, but not to the extent where we’ll see 1990s-style repossessions.

Another potential route to a crash is that the availability of credit dries up. This means that buyers simply can’t afford to pay the asking prices because the level of debt is not available to them. Again, though, in the absence of much higher interest rates, this seems unlikely. And in any case, a credit drought would usually lead more to a freeze rather than a crash – most sellers just sit on their homes rather than sell at a big loss.

So I can’t see a crash coming. But with buyers no longer gripped by property fever, and interest rates likely to rise modestly if Brexit doesn’t end in apocalypse, then I reckon we can expect prices to continue moving in the right direction – slowly downwards.

And that’s good news. If you want to take some of the heat out of the political anger gripping the nation, then rising wages and modestly declining house prices are one good way to do it without causing a lot of disruption. Fingers crossed.

Source: Money Week

Marketing No Comments

Bank of England slashes UK growth forecasts amid Brexit uncertainties and global slowdown

The Bank of England today decided to leave interest rates unchanged as expected, but slashed UK growth forecasts as Brexit uncertainties mount.

The bank’s monetary policy committee (MPC), which last raised rates to 0.75 per cent in August last year, unanimously voted to hold interest rates for a fourth consecutive meeting.

The MPC said a UK economic slowdown in late 2018 “appears to have weakened” at the beginning of this year, citing softer activity abroad and greater effects from Brexit uncertainties.

It cut growth forecasts for 2019 to 1.2 per cent of GDP, down from its previous 1.7 per cent forecast in November.

It would be the weakest expansion since 2009.

The bank’s governor Mark Carney said business investment would soften further “before picking up sharply once the fog clears.”

Carney added that a “rapid decline in certainty” could push growth up by 0.5 per cent on its forecasts.

The growth outlook for 2020 was also trimmed to 1.5 per cent, from 1.7 per cent.

Sterling fell 0.41 per cent following the Brexit warning and lowered forecast, from $1.293 to $1.287, but has since surged up to $1.294 and 1.14 against the euro.

The committee said: “UK economic growth slowed in late 2018 and appears to have weakened further in early 2019.

“This slowdown mainly reflects softer activity abroad and the greater effects from Brexit uncertainties at home.”

It added that the economic outlook “depends significantly” on the nature of Brexit, specifically new trading arrangements and whether the transitions is smooth or abrupt.

In the minutes of its meeting, the MPC said: “Since the Committee’s previous meeting, key parts of the EU withdrawal process had remained unresolved and uncertainty had intensified.

“Businesses had appeared increasingly to be responding to Brexit-related uncertainties, and there were some signs that those uncertainties might also be affecting households’ spending and saving decisions.”

The MPC also unanimously voted to maintain its stock of UK government bond purchases at £435bn and its stock of corporate bonds at £10bn.

City A.M.’s shadow monetary policy committee unanimously voted to hold interest rates ahead of today’s meeting.

The panel of City economists cited “peak Brexit uncertainty” and the possibility of a continued global slowdown as reasons to leave the rate unchanged.

They noted that the UK labour market remained robust but that a global softening indicated caution.

This month’s guest chair, Tej Parikh, an economist at the Institute of Directors, said: “The speed of travel for interest rate hikes remains inextricably linked to what happens on 29 March. Right now, uncertainty is checking domestic demand.

“Businesses have been shelving investment plans, and consumers are also tightening their belts as Parliament remains in deadlock.

“Meanwhile, a potential global slowdown is adding a downside risk to the U.K.’s future economic growth.”

Source: City AM

property investing
Marketing No Comments

Why property investing is more than just brick and mortar

The world economy is suffering a slowdown, from Beijing to Berlin, while the financial markets are bearish and volatile.

Investors are faced with flat interest rates continuing – the market is not expecting interest rate rises in a meaningful way.

Meanwhile, a slowdown in consumer spending is leading equity markets into a downward trend as the bull run fades and volatility continues.

On top of this, the property market is slowing – including a drop in top-end London prices reverberating downwards and outwards through the UK market.

So much economic uncertainty and global market correlation makes it challenging to find suitable investment opportunities.

However, our research shows people still have great trust for investments backed by ‘bricks and mortar’, and property continues to be a popular asset class with investors and their advisers due to historical long-term growth – having generated a return of 10.9 per cent a year since the 1970s.

As property prices are not necessarily correlated to the stock market, UK property values can remain resilient during periods of economic downturn.

With the impact of tax changes on buy-to-rent continuing to affect smaller property investors, many previous ‘would-be’ landlords, as well as passive and more casual investors, are now looking to invest in property through funds and structured products.

The good news is that there is a growing range of innovative products and wrappers, allowing private investors to access unlisted and uncorrelated investment opportunities that once were the domain of institutional investors alone.

Listed funds and trusts

Investing in property for private investors has tended to mean purchasing property directly or investing in listed funds and trusts. These listed funds remain popular to gain exposure to property:

• Commercial property funds invest in commercial property, such as retail, office blocks and warehouses. Yields can be higher than those available from the residential market, but there are associated risks. Commercial property can stand empty for longer than residential.

• Residential property funds and trusts offer exposure to the UK residential market through flats and houses within the rental sector. With this option clients can benefit from diversification as they have a share of many different properties.

• Indirect property funds focus on the shares of companies within the property and property development sector, rather than physical bricks and mortar. In this case, their performance is linked more closely to the wider share market and the trading performance of these companies, rather than the value of property.

The types of properties within funds is an important consideration. For instance, offices and warehouses could generate good returns in 2019, but High Street properties are under pressure.

Similarly, with residential property clients may want to know whether they have exposure to the top end of the market and central London as some areas have decreased in value – and this may reverberate into other regions in 2019.

With all these options, capital is at risk and investors do not have control over the underlying assets held. Listed funds generally offer clear pricing and clients can typically liquidate their investment to cash.

However, there may be costs or fees involved, as well as timing considerations. If a large number of investors attempt to cash in at the same time, this could force some property funds to suspend trading – or move to bid pricing – as in 2016, following the UK’s vote to leave the EU.

Correlated versus uncorrelated 

Traditional listed funds typically follow the broader market movements regardless of the underlying asset values. Financial innovation is delivering more options for investors looking for alternatives, such as:

• Unlisted funds, which are traditionally available for institutional investors only, but following Mifid, the adviser market has been more receptive to these funds and more individual investors have been able to participate.

As unlisted funds are not traded on an exchange, their price is not subject to daily price volatility, and they trade at a value closely linked to their net asset value.

Investments in unlisted funds are generally illiquid, and many have ‘lock-in’ periods.

The Financial Conduct Authority has just closed its consulting phase on the rules governing funds that invest in assets with little underlying liquidity, reflecting the increasing demand for these products.

• Crowd-funded real estate special purpose vehicles, which allow investors to select individual properties to invest in. While the selection allows more control, the pipeline of investments is not guaranteed or necessarily suitable for the investor’s objectives, so it takes time to create a portfolio.

Pricing is linked to NAV, but such SPVs are not readily saleable securities. Where liquidation is possible, the proceeds can be lower than market value, and trading fees can be significant.

We expect growth in this area from many buy-to-let investors exiting their directly held portfolios and moving into structured and intermediated products.

• Property-backed lending, which provides an opportunity to earn a passive income from property, with the potential for attractive risk-adjusted returns. Property loan investments range from buy-to-let through to wide-ranging property development, such as building hundreds of homes on a greenfield site.

When choosing which property loans to invest in, investors should ensure they understand the nature and scope of the underlying project – for instance, whether it needs planning permission.

What does the near-future hold?

We expect to see an increase in choices available to enable homeowners to use their house to generate income and release capital.

There are many more homeowners using equity release mortgages to access capital – whether that is then used to invest in the home or elsewhere.

The latest figures show that £4bn of capital was unlocked between October and December by equity release mortgage holders, according to figures published by the Equity Release Council.

Innovation increasingly allows people to ‘sweat their home as an asset’. Just 10 years ago it was inconceivable that households would be making money by letting their spare rooms to tourists. There are now services to let your garage out as storage space, or driveway for parking.

We are beginning to see this innovation creating more investment opportunities for investors too, which may in turn lead to further opportunities for homeowners looking to access the capital tied up in their own property.

Some advisers are already considering these increased investment choices when looking to optimise risk-adjusted returns for their clients.

Source: FT Adviser

savings rate
Marketing No Comments

Savings rates beat property price growth

Investing your money in a top savings account over the last year will have earned you more money in returns than the property market, new research has found.

Mutual insurer, Royal London, has discovered the best-buy interest rates were now higher than the annual average property price growth in England.

It came to the conclusion after analysing Land Registry figures, which showed the average home in England grew in value by 2.6% in the past 12 months to £247,430. Meanwhile, the best fixed-rate savings bond, as highlighted by analysts at Moneyfacts, was a seven year deal paying out 2.75% interest.

It means the best savings rate has performed better than the average UK property. Even the best easy access savings account, which currently pays 1.42%, would be enough to beat house price rises in the slowest regions of London and the South East, some areas of which have seen price declines.

Becky O’Connor, personal finance specialist at Royal London, said: “Savings rates have been offputtingly low over recent years, as a result of the rock bottom Bank of England base rate. However they have risen slightly as the base rate has increased.

“Coupled with a decline in the rate of house price growth, this trend has resulted in the most competitive savings accounts now paying more interest annually than property owners typically earned in the last 12 months.

“While it is still difficult to beat inflation with most savings rates on offer, if you live in London or the South East, it is now easy enough to beat the current rate of house price inflation with a savings account.”

Royal London pointed out its research was based on savings accounts with the very best rate on the market. It said the rate and term of a savings account could make a difference to returns you end up with.

Indeed, the returns on individual properties could also depend on a number of factors, including its location and whether it’s a main home or a buy-to-let.

Tax advantages

Royal London is urging savers and investors to remember the tax advantages of pensions and ISAs when planning where to place their cash for the long-term.

O’Connor added: “It’s important to remember that property or savings accounts are not the only things you can do with your money for long term financial returns. Saving into a pension comes with significant tax advantages and over the long term, the performance of stocks and shares investments tend to outperform cash.

“Money that goes into a pension benefits from tax breaks whilst money withdrawn from an ISA is tax free.”

Source: The Money Pages

Marketing No Comments

UK property prices in 2018 grew in Manchester but fell in London

  • Property prices in London fell by 0.2% in 2018, underlining the current lack of sentiment for real estate in the capital
  • However, research shows significant annual growth in prices in key regional cities, such as Birmingham and Manchester
  • Investors should look at areas where “affordability remains attractive and employment levels are rising” to achieve the highest levels of growth

The numbers confirm what many have accepted as the reality for some time now. In 2018, property prices in London fell. But, in other cities in the UK, it was a completely different story.

New data from online agent Zoopla shows that average prices in London last year fell by 0.2%, underlining the slowdown in activity the market has witnessed in recent months.

Prices reaching an affordability ceiling and increased purchasing costs are just some of the factors attributed to the slowdown, as London’s property market begins to look increasingly unattractive to many global investors.

“House prices in London have been falling for almost 12 months, while the rate of growth has slowed across cities in southern England, a result of growing affordability pressures, higher transaction costs and increased uncertainty,” analysed Richard Donnell, Research and Insight Director at Zoopla.

But, the research shows high growth has been recorded in other UK cities. Since June 2016, property prices in Manchester have increased 15%, while there’s also been a 16% uplift in average prices in Birmingham, too.

Donnell added: “The strongest performing cities are outside south eastern England where affordability remains attractive and employment levels are rising. We expect current trends in price growth to continue across the rest of this year, with prices rising in line with earnings for much of the UK but lower growth and some house prices falls in London and the South.”

With increased levels of commercial investment and job numbers, more people are moving to live in Manchester – and this is having a significant impact on the performance of the city’s undersupplied property market.

In addition to capital growth, investors in Manchester are also enjoying better yield growth from their property, compared with those with real estate in London.

The latest figures from LendInvest’s rental index suggest that average yields in Manchester are currently 69% higher than the average for the Greater London area.

Source: Select Property

target Homebuilder
Marketing No Comments

New homes target threatened by labour shortage, say industry bosses

The Scottish Government could struggle to meet its target to build 50,000 homes by 2021 due to a lack of workers, industry bosses have suggested.

At the Scottish Parliament on Tuesday, the Economy, Energy and Fair Work Committee was told the impact of Brexit, as well as large projects in England, had reduced the number of people available to work on projects.

Concerns were raised by a panel of construction sector leaders that the reduction, combined with too few young people entering the industry, could lead to an insufficient number of Scottish workers being available to build new housing.

Unite the union’s Steven Dillon suggested that following the completion of large projects in Scotland such as the Queensferry Crossing and the Aberdeen bypass, workers have been making the move to England in search of work.

The workers are critical no matter what you do because it’s not going to be built using a computer

Steven Dillion, Unite the union

Mr Dillon said: “One of the biggest problems we’re going to have with building houses is the labour market.

“There’s a lot of major problems starting in England, such as HS2 and Hinkley Point, and it’s going to drain the Scottish economy of crafts people.

“That’s one of the major concerns this committee should have. We’re going to have a skills shortage when the contract on HS2 takes off.

“The amount of Scottish workers that have moved down to Hinkley Point … you need to look at that if you’re talking about building these houses.

“It may be a case of boosting apprentice numbers, for example, so that we can build these houses.

“The workers are critical no matter what you do because it’s not going to be built using a computer.”

Hew Edgar, interim head of UK policy for  the Royal Institution of Chartered Surveyors in Scotland, indicated the availability of large projects could help to attract and retain workers.

“The Queensferry Crossing was a great piece of work,” said Mr Edgar.

“It was what we would consider a mega-project. The problem in Scotland now is that we don’t have a mega-project to look forward to.

“So the talent and the labour force that was attracted to Scotland to work on this project have now left to seek employment.

“It would be prudent of the Scottish Government to ensure that there’s a pipeline of mega-projects or large-scale projects that would entice talent to come to Scotland and work and also to remain”.

Ian Rogers, Scottish Decorators Federation chief executive, said the UK’s departure from the EU would also cause problems for the sector with fewer workers from Europe being available.

He also suggested the construction industry would be forced to compete with other sectors, including retail and the hotel trade, in attracting new apprentices.

“We’re now looking at Brexit as a no-deal possibly,” Mr Rogers said.

“That is going to stop the inflow of labour because it won’t meet the government’s minimum wage criteria in some areas.”

“We’ll then be fishing in a pond that everybody’s fishing in for apprentices.”

Simon Rawlinson, of Arcadis, representing the Construction Leadership Council, said: “I think it’s important that the committee recognises that the supply chain and the labour force involved in the delivery of housing is almost completely different to the supply chain that is involved in the delivery of large civil engineering projects.”

Source: BT

Marketing No Comments

UK economy flat-lines as Brexit nears, firms cut jobs – PMI

UK economy risks stalling or contracting as Brexit nears and a global slowdown worsens, with firms in the dominant services sector reporting job cuts for the first time in six years and falling new orders.

Sterling slipped to near two-week lows against the dollar after a leading gauge of the world’s fifth-biggest economy, the IHS Markit/CIPS UK Services Purchasing Managers’ Index (PMI), fell to 50.1 in January from 51.2 in December.

That marked the PMI’s lowest level since July 2016 and was barely above the 50 mark that separates growth from contraction. A Reuters poll of economists had expected a reading of 51.0.

Britain’s economy defied forecasts from some economists that it would go into recession after the 2016 referendum vote to leave the European Union. But growth slowed sharply in late 2018 as worries mounted about an abrupt, no-deal Brexit.

Overall, the survey suggested Britain’s economy is flat-lining after losing momentum late last year.

“The risk is that activity softens further — firms will become increasingly risk-averse and implement contingency Brexit planning,” ING economist James Smith said.

Tuesday’s figures are likely to worry Bank of England officials ahead of their latest interest rate decision announcement and new forecasts for the economy on Thursday.

The report adds to other signs that Brexit — scheduled for March 29, less than eight weeks away — is taking its toll on businesses and consumers.

Prime Minister Theresa May, under pressure from her own Conservative Party, wants to reopen her withdrawal agreement with the European Union to replace a contested Irish border arrangement, something Brussels has rejected.

Investors are urging the government to ensure an orderly exit from the club Britain joined in 1973.

On Monday, a Deloitte survey of chief financial officers showed appetite to take on financial risk had fallen to its lowest level in nearly a decade due to fears of “the hardest of Brexits” and rising U.S. protectionism.

That caution was evident in Tuesday’s survey, covering the bulk of Britain’s private sector economy.

New orders fell for only the second time since the financial crisis, while employers cut jobs for the first time since late 2012 — around the last time Britain flirted with recession.

“The survey results indicate that companies are becoming increasingly risk-averse and eager to reduce overheads in the face of weakened customer demand and rising political uncertainty,” Williamson said.

New export orders contracted at the fastest pace since records for this part of the PMI began in September 2014.

Source: UK Reuters

Marketing No Comments

Private Rented Sector investment to hit £75bn by 2025

Investment in the UK’s private rented sector (PRS) is expected to nearly double in size over the next six years, as home-ownership rates wane in the wake of affordability pressures.

The level of capital being invested or committed into the UK’s professionally-managed institutional PRS is forecasted to hit £75bn by 2025, marking a sharp rise from its current levels of just under £40bn.

The total proportion of the UK’s housing market which is expected to be privately rented is also set to grow from 20.6 per cent to 22 per cent, with an additional 560,000 households predicted to be living in the private rented sector by 2023, according to Knight Frank.

“Once again, affordability has emerged as a key reason for people choosing to rent in order to live in an area where they would not be able to buy,” said Tim Hyatt, head of residential lettings at Knight Frank.

Hyatt added: “However, average rents in Great Britain rose one per cent in the 12 months to December as more landlords leave the sector and levels of stock decline.”

Source: City AM

Marketing No Comments

Commercial property investment in the north falls to five-year low

COMMERCIAL property investment in the north fell to its lowest level since 2013 last year, according to a new industry report.

The latest Lambert Smith Hampton bulletin shows that the £176.6 million investment volume recorded in 2018 was 48 per cent lower than the previous year and 12 per cent down on the 10-year average.

After a slow start to the year, the quarterly activity exceeded £50m for the remainder of 2018, boosted by the beleaguered retail sector.

Retail transactions accounted for almost half of the activity in 2018, with notable deals including the Belfast sale of 40-46 Donegall Place for £16.4m, the acquisition of Bow Street Mall in Lisburn for £12.3m and the purchase of the Newtownards-based Castlebawn Retail Park for £7.2m.

Office activity also picked up in the second half of the year, largely driven by two Belfast deals – the sale of the Metro Building for £21.8m and the £15.2m purchase of Obel 68.

There was further positivity noted within the alternative sector, with car parks, car showrooms, gyms and hotels among the assets that changed hands in 2018.

Private Northern Ireland investors remain the most active and accounted for a third of investment volume last year, while institutional activity increased from 11 percent of volume in 2017 to 21 percent last year.

Notable institutional transactions included CBRE Global Investors £18.4m purchase of the NCP Car Park on Montgomery Street in Belfast and Corum Asset Management’s purchase of 40-46 Donegall Place.

Martin McCloy, director of capital markets at Lambert Smith Hampton, admitted that the ongoing political uncertainty has impacted on the local market.

“ The challenging political environment has undoubtedly had a negative effect on investment activity over the past two years, with 2017 boosted by the £123m sale of CastleCourt Shopping Centre,” he said.

“While overall the market has demonstrated a level of resilience, there is a lack of supply of good quality assets and investor caution is evident.”

Looking at the year ahead, Mr McCloy said the trend of a quiet first quarter is likely to be exacerbated by the upcoming March 29 Brexit deadline.

“Both buyers and sellers are delaying decisions until there is clarity on the withdrawal agreement or on no agreement, as the case may be.”

“Investment activity is expected to pick up when the terms of the future relationship are clearer and the transition period begins,” he added.

Source: Irish News

UK housing market
Marketing No Comments

What can we expect from the UK housing market in 2019?

Brexit and its impact is on every person’s mind, and rightfully so. The local’s aren’t sure which way the market is going to go – will the prices of the UK housing market rise or will they see a sharp fall? National investors, as well as foreign investors, are waiting with bated breath to know what their next move should be. Should they invest in property, sell their current properties or just let things be as they are. Well, below is what the experts are predicting and expecting from the UK housing marketing in 2019.

The number of houses for sale is expected to fall

According to RICS (Royal Institution of Chartered Surveyors), there will be a 5% drop in the sale of houses which is probably around a £1.5 million drop in sales in comparison to 2018. Since many people who have invested in property in the UK will not be forced to sell, they will not have to list their houses on the market. However, to maintain some sort of equilibrium there will be properties up for sale. As per RICS findings in 2018, the number of houses for sale i.e. the stock in the real estate market has been at its all-time low. That is because people are not willing to put their properties up for sale.

The monthly rent is expected to increase

Most people will be unsure about whether or not they should buy a house in 2019, or maybe because of a lack of options, so they will prefer to stay on rent. Owing to this fact, the prices of the rent for most houses will increase. You should expect to see a 2% increase in the cost of rent all throughout London and even certain parts of the UK. Some experts are predicting a 4% drop in the prices of London homes while some are expecting a 2% drop. None the less, even though the prices may be dropping, the number of houses for sale will also drop hence more people will prefer to take a place on rent. Keeping that trend in mind, most homeowners will spike up the rents.

The demand for houses in the outskirts will rise

Keeping in mind that the pound is falling and that a visit to the countryside is as good as a vacation, investors will start buying homes in the outskirts and near the countryside. These houses will be bought with the purpose of enlisting on Airbnb for the locals to book and stay. As per estate agents in Surrey, there has been a 0% change in the average property prices in Surrey from 2017 to 2018, and this is expected to remain stagnant in 2019.

The UK real estate market will see a rush of foreign investments

With the pound falling, more and more foreign investors will start to invest in properties in the UK. While the locals might sit with their hands tied waiting to figure out what is going to happen, the ultra-rich British nationals, as well as foreign nationals, will swoop in and buy the properties because of their discounted prices. For many wealthy investors, Brexit was basically an investment opportunity to invest in prime properties.

All in all, despite the changing prices and trends in 2109, experts are predicting that the UK real estate market will stabilise and return to normal within the coming 5 years. So, if you are planning on buying a house in 2019 then you should expect to see a return on investment in the next 4 to 5 years, so plan long-term investments as of now.

Source: News Anyway