The UK Property Industry is continuously moving and evolving, with the unpredictable effects of Brexit looming, the ever-changing demographic structure and advances in technology.
Here are some of the latest trends and stories being discussed within the UK property market:
1. Cheaper to buy than rent
Despite an increase in rentals (Countrywide Research has predicted that by 2022, 20.5% of homes will be rental) evidence still points to buying property being cheaper than rental.
Research carried out by Santander reveals the average monthly rent in the UK is currently £912 per household, compared to monthly repayments of £723 for the average first-time buyer household. This means average savings of £189 a month or £2,268 a year for buyers compared to renters.
2. Online continues to grow
Homebuyers and sellers continue to turn to online estate agents thanks to the strong levels of service they receive.
Online agents increased their market share by 11% during the first quarter of the year, giving them 7% of the overall market.
Flexible contact hours, 24/7 customer service, face-to-face visits from local experts and lower costs are contributory factors for its continued growth.
3. The grey pound dominates the market
Younger buyers are outnumbered by older buyers in the UK property market due to the preferable wage to house-price ratio at the time of purchase.
Homeowners aged 66+ were responsible for around 43,000 property transactions in the first quarter of 2018, a 46% increase compared to the same quarter in 2017.
4. House prices keep climbing
Housing prices have shown a steady incline in recent years and property consultants, Strutt & Parker, predict that the figures will continue growing.
According to the UK House Price Index, as of April 2018, the average house price in the UK is £226,906. Prices have risen by 1.2% compared to the previous month and risen by 3.9% compared to the previous year.
These figures are supported by Strutt & Parker, who, despite Brexit uncertainty, have provided a five-year prediction on the housing market, with an estimated 18% rise in housing prices by 2022, growing 2.5% year-on-year.
5. Homeowners on the increase
Despite property prices continuing to rise, the number of homeowners has risen for the first time in 13 years.
Following the financial crash of 2008 that created a clash between wages and property prices, the Government has positioned accessible homeownership as a matter of importance.
Since the Help to Buy equity Loan scheme was announced, over 160,000 properties have been purchased, with 81% being made by first-time buyers. Meanwhile, Stamp Duty cuts will apparently save four-out-of-five first-time buyers up to £5,000. However, the cuts are mainly benefitting existing homeowners due to the rise in house prices.
6. New-build homes becoming more popular
A number of factors are driving an increase in homeowners, first-time buyers and buy-to-let investors choosing new-build properties.
Among the key reasons is higher energy efficiency compared to that of older properties. The HBF claim that occupiers of new-build homes save £629 a year through being more energy efficient. Other factors include the Help to Buy Equity Loan scheme and the opportunity to customise new-build properties – saving money that might be needed for renovating an older property.
7. Shopping influences location
Location to schooling and transport services continue to be primary influences on purchasing decisions. But other location-based factors – such as access to local shops – are becoming less of a consideration in location choice thanks to online delivery services.
We reach thousands of UK homeowners every month, connecting them to property services that relate to selling and buying their home. To discuss your lead generation needs, contact us today.