It’s only few more days for the impending Brexit to happen. As the United Kingdom prepares itself for the days after they exit from the European Union, the UK residential property market will be hugely influenced by the sentiment.
Meanwhile, anything- a deal or no-deal can be expected, here we bring forth 9 Residential Real Estate Market Trends for the year 2019 for you to watch out. These trends can bring great insight on to the key trends our experts think will affect the UK property industry over the next months.
However, the uncertainty of Brexit is a short term sentiment and the impact of uncertainty will be reflected in the UK housing market in many different ways.
So what are the six key residential trends you can expect in 2019?
1. Continued Buyer Caution:
As there's a growing uncertainty over Brexit, house prices in 2019 is more likely to be judged by the level of confidence each buyer has in spending his/her finances. This doubtfulness will not help house prices in any way and provide very little growth in the national level.
2. Regional Market Performance:
Evidence suggests that the markets of the Midlands and North of England will outperform those of London and the South which will be reflected in investor focus during 2019 and the next few years.
3. Income Stream Potential:
As there is a likelihood for house price growth to be limited by the increasing interest rates and mortgage regulation, investors are expected to pay closer attention to the income stream delivered by their residential investment. And, there will be a shift from private to corporate investment.
4. Boost in Private Rental:
There is an increasing demand for private rental homes in the UK and the rise in the institutional build-to-rent schemes with plans to deliver more than 100,000 homes. So, there is an expectation on large-scale investors to deliver larger, but increasingly diversified, offerings to the private rental market.
5. Pressure on Planning System:
In areas of high housing needs, the measures to standardise the calculation of housing delivery targets and hold local authorities to account for the homes built in their area through the planning system are likely to gradually feed through into more planning consents.
6. Diversity on large sites
A slowing housing market in areas of highest housing need will mean greater diversity tenures which will be needed to meet the housing targets. This could include more build to rent homes and affordable housing and much more taller sky scrapers especially in London where land is a premium
7. Interest in Beds Sector:
The "Beds" sector in the real estate market brings forth a keen interest which has helped its growth. Although, the for-sale residential market has cooled off, the rented housing, student accommodation, hotels and the healthcare sectors are all growing. They display similarities in terms of operational risks and supply-side constraints which has helped in driving the growth in price.
8. Favourable Credit Conditions:
There is a strong investor demand as there are favourable credit conditions which support growth in rents and add values in most major markets.
9. Real Estate Technology:
Occupiers and investors will put in place clearer strategies and senior accountability for innovation. They may take a more issue-led approach to investing in tech innovation programmes as the UK will continue to be a prominent technology and innovation funding and experimentation zone.
Those planning to move this year are more likely to remain cautious until clarity of whatever nature emerges. Buy-to-let investors meanwhile look set to focus their sights northwards in search of higher yields and the potential for capital growth.