How do you see future performance for the UK property market?

[totallyproperty]

The UK property market is in effect two very separate markets with London and the rest of the UK often showing different levels of performance. We would be very interested to learn your opinion of the UK market at the moment and the prospects for the medium to long term.

 

[royston8h]

I think we can forget about the properties from UK for short term. May be unlikely to appreciate to a level that any investor will feel exciting about. For medium and long term, it can be still a viable investment option.

However, UK student accommodation can be quite interesting as such rental demand especially near good UK universities is always very high...Recently, i did a research about Sheffield area and knowing that for every four students, three are desperate to look for nearby student accommodation near Sheffield university.

 

[strongman91]

bullish. because economy is recovering and low interest rate. and property also under supply

 

[azanali]

A monthly report which provides a brief update on the key investment, financial and economic indicators relevant to the UK commercial property market, along with expectations for future performance.

 

[pinkie]

So many factors indicate the ongoing health of the UK property market - if you choose the right place.

Most convincing is taking a historical perspective: if you look at property costs over the last 1000 years, the only time they have been lower at the end of a 10-year cycle is during the Black Death. When fewer people simply meant a lower demand for housing.

Add to that that we are an economically stable country where English is spoken and where foreigners are (up to a point!) welcome, and the lack of extreme weather. Looks like we won 1st prize in the lottery of life ...

 

[josephc247]

The property market is thriving, so they say. The demand for homes (to purchase and/or rent) has been increasing - thus alerting sellers, buiders, and home developers to keep up with the staggering number of people wanting to buy/rent homes for them and their families. News reports had it that the skyrocketing of the House Price Index is due to the lack of supply against the demand. The ONS has shown this in their latest reports. But as we observe things, it's not going to be long until the supply has kept up with the demand for properties. Plus, the government and private building societies and financial institutions have been implementing schemes that help potential buyers with their plans to purchase properties. It's a good sign. The UK property ladder may still be daunting to take on but things are easier now. Well even conveyancing's not as worrying and stressful as it was in the past. The UK Housing Market is looking good and let's hope it stays good for long.

Cheers!

Joseph

 

[JadenS91]

It is predicted that property prices will be up 9% at the end of 2014 and up another 5% by the end of 2015 (this is a generalisation across the UK)

 

[darrenpropertyinvestor]

UK property is still very strong, both in terms of long term growth and rental demand. Not only do we have low inflation but we have the added stability of rates being set directly by the Bank of England which makes wild fluctuations less likely.

Rental demand is growing due to disproportionate prices to income ratios. Lots of people, lack of supply makes property a fabulous investment I think.

 

[George79]

Depends on which part of the UK we talk. The London average house price break the 500,000£ barrier, and in Wales or Northern Ireland is just over 20% of this value.

 

[gih_hk]

Depends on which part of the UK we talk. The London average house price break the 500,000£ barrier, and in Wales or Northern Ireland is just over 20% of this value.

Agreed. The upcoming crossrail 2 project will definitely be adding to the rise of housing as well. Especially in areas where upgrades are due. Improved public spaces and will obviously drive more investors in such areas.

Where to you see buy-to-let investment in all this?

 

[George79]

Agreed. The upcoming crossrail 2 project will definitely be adding to the rise of housing as well. Especially in areas where upgrades are due. Improved public spaces and will obviously drive more investors in such areas.

Where to you see buy-to-let investment in all this?

I am sure that there will be areas with some sort of secondary conditions!

 

[gih_hk]

Crossrail 2 and the London Property Market

I am sure that there will be areas with some sort of secondary conditions!

I believe there will always be secondary conditions. But in it's essence, investing on London property near Crossrail route outweighs the usual risks when buying especially with news of a bubble and a cooling market.

Any opinion on the recent property predictions for 2015, btw? I'd love to get your insight.

Cheers!

 

[SamW]

you should also definitely look into Cardiff university, admissions to cardiff have been on the rise with larger portion of international students outweighing the local students.

 

[Jacks & Jones]

Hi, Some great posts already, for what its worth as and estate agent in the South of the UK, I expect to see a continual rise in house prices this year due to the shortage of stock. However as always with the general election fast approaching i expect the market to go a little soft for a couple of months

 

[cacherealestate]

i think the UK real estate market gain really high point in 2015

 

[gih_hk]

We might expect a more "subdued" property market in London until the May elections. This is how I see it for now. The uncertainty factor plays hugely among property investors, after all. There are reports of a slowed growth but undeniably still one of the best performing markets among developed nations.

 

[Residential Estates]

Investments Outside of London

We might expect a more "subdued" property market in London until the May elections. This is how I see it for now. The uncertainty factor plays hugely among property investors, after all. There are reports of a slowed growth but undeniably still one of the best performing markets among developed nations.

I completely agree, London is out on its own when it comes to capital growth. Other major cities though such as Manchester has shown 5% year on year growth. I invest there as it's not a million miles from me, although that shouldn't really matter, but also because I can get circa 8% to 10% NET, with guaranteed rents in some case up to 10 years. I have an investment at the moment which is paying 5% on deposited funds until completion.

Now compared to what any high street bank is paying, this gives me a good income, with decent capital growth over the years given the properties are prime locations in a major city.

London though is absolutely the runaway leader...

 

[totallyproperty]

The biggest factor effecting UK property is the demand for good quality rented accommodation. If you can provide that then as a landlord your set as I don't see the supply of property catching up with demand any time soon...

Also invest for income rather than capital growth and you'll be ok if another credit crunch comes. I see high prices and low yields in London as a higher risk. You cannot predict the market so invest on the strength of the yield now not guesswork for capital growth in the future.

 

[gih_hk]

The next 5 years still look positive

Based on data from Savills, 2015 might not be the best year for London property but it doesn't mean that the following years will stay as such. In fact, 2016 for Prime London, Inner Commuter area as well as the other commuter area are forecasted to see house price growth by as much as 7%.

Commuter districts seem to be the ones to get the best yields this year.

 

[xclent]

I agree with some of the posts here.

There is always demand for well managed and high quality rental properties, whether these are HMOs or otherwise. Especially in London where rental demand is never going to be satisfied.

Safe investment, if you can find some sort of in.

 

[Barny]

In my area of Suffolk, with the links to the A14 and Cambridge, along with direct trains from both Cambridge and Ipswich to London, the demand for rental properties is huge because house prices are just too high for people to afford.

I know afew people from within local agents and they all agree that for every 1bed flat there are usually 10+ people waiting and for every 2 bed house there are 15+. The demand is certainly there and for those able to afford BTL properties, 2015 is looking to be a good year for landlords / investors

 

[londonpropertyanalyst]

strong prospects for London continuously driven by:
-high number of HNWIs driving demand making the market a safe haven
-structural mismatch in supply and demand
-strong pipeline of infrastructure and transport projects

 

[propertybuzz]

after the conservatives won, property prices have gone up!

 

[propertybuzz]

not forgetting their currency also strengthened.