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UK Property Price Predictions For 2018

With the New Year upon us, attention turns to the year ahead with many already asking us for property price predictions for 2018.

Whilst no-one has a crystal ball, there are some early indications that 2018 could see some growth after a relatively flat 2017.

So, what will house prices be doing in the year ahead? In this guide, we bring you the opinions of the UK’s leading property professionals so you can decide for yourself.

Did Property Prices Increase in 2017?

Despite a lot of negative press and some concerns over the impact of Brexit, particualtry in the wake of the controversial snap-election, house prices in 2017 remained stable. In fact, the average price of a home in England actually increased by around 2.45% (according to the Nationwide) or 3.66% (according to the Halifax).

house price price predictions uk

What will house prices do in the coming year? Image via Flickr.

Factors Affecting House Prices 2018

There are two main drivers behind the slowdown in the growth of property prices; reduced spending power and caution amidst the changing economic landscape amidst Brexit negotiations.

  • Inflation levels have outpaced wage growth in the last 12 months which has affected spending power. This reduction has had an affect on other areas including retail and leisure spending plus borrowing.
  • The property market is expected to remain cautious around the impact of Brexit as the details of the UK’s departure from the EU unfold.
property prices 2018

The impact of Brexit is still to be determined and may make the market a more cautious one. Image via Public Domain Pictures.

What are the Experts’ Property Price Predictions?

As ever, industry opinion is divided with some anticipating more growth (albeit slight), others predicting a slump and, as always, those that are on the fence who see a flat year ahead.

Moderate Growth

Some private developers are predicting a rise of 2-3% with some dips along the way as the market responds to news of Brexit.

The view is supported by Halifax who are playing a cautious game with their predictions, suggesting an overall increase in property prices by 0-3%.

Low Growth

A recent poll conducted by Reuters asked the opinion of more than 20 housing market specialists for their UK property price predictions for 2018 and the overall results showed that a small growth of 1.3% was expected nationally.

As ever, the property markets experience different trends in different regions and the consensus of opinion is that London and the South of England can see more moderate increases, if not a period of price drops and rises which will result in an overall flatlining.

Conversely, property prices in the North are expected to enjoy more consistent growth as earnings, relative to the cost of housing, make housing more affordable.

The slow down in growth is partly being attributed to the lack of confidence that buyers have in the value of their home with more than a third of homes on the market reducing their asking prices in a bid to sell.

No Growth

The Royal Institute of Charters Surveyors (RICS) paints a much bleaker picture and expects 2018 to see property prices grind to a halt.

The picture is made less rosy when you consider their opinion that the national average will offset weaker markets in the South and London who will likely see a fall in property values.

RICS members do not believe that the recent cut in stamp duty for first time buyers will not be enough to stimulate the market with affordability still being a barrier for many; again, particularly in the South.

london house prices 2018

Will house prices in London fall in 2018? Image via Wikimedia.

Regional Growth

Property market analysts, Hometrack, suggest that the UK can expect to see some encouraging growth in prices in regional cities like Manchester, Birmingham and Glasgow whilst London will see a period of stagnation.

Affordability is the key driver behind the opinion with London having experienced unsustainable growth over the last decade. House prices in the capital have leapt 70% since 2009 with wages falling far short of this increase. The bottom line with the price for London homes is that they are no longer within reach of the people who demand them and something has to shift. 2018 could well prove the turning point that the property market in London is realigned but don’t expect a major sea change.

Property Price Predictions for 2018: Summary

Forecasting for any markets is a gamble and there are no clear indicators pointing to any particular school of thought, but the general consensus of opinion is one of low growth outside of London and moderate growth for regional cities.

 

However 2018 pans out for the property markets, Property Assistant can help homeowners achieve the best price for their home and find their next dream property. If you would like to find out more about the markets in your area then contact us today on 0118 912 2370.

Featured image via Flickr.

Thames Valley House Prices: July 2017 Market Report

As figures for house prices in the UK hit the press for July 2017 we bring you our market snapshot on how the Thames Valley property market is performing.

House Prices: July 2017

The average house price for the UK in July 2017 was recorded at £226,185 which was 1.1% up on June 2017 and up 5.1% against the same period in 2016.

For the Thames Valley area, the average price was also up, but by a more modest 0.35% month on month to £358,307 or 1.56% against the same period in 2016. This can be broken down by area as follows:

Average House Price

Thames Valley Area Jul-17 Jun-17 Jul-16
Basingstoke and Deane £  302,690 £  302,726 £  293,097
Bracknell Forest £  355,918 £  349,543 £  350,052
Reading £  308,166 £  303,276 £  303,390
Slough £  303,181 £  301,986 £  295,357
West Berkshire £  347,017 £  347,995 £  336,135
Windsor and Maidenhead £  479,214 £  481,821 £  485,027
Wokingham £  411,964 £  413,871 £  411,876
AVERAGE £  358,307 £  357,317 £  353,562

 

The price divide against the rest of the UK remains sizeable with the average price of a house in the Thames Valley area being £132,122 higher than the rest of the country; that’s a staggering 58.4% difference!

house price rises UK

At the end of every rainbow sits a crock of gold… Image via Flickr.

With the exception of Windsor and Maidenhead, all areas in the region saw a year on year increase in the average house price, with the Royal Borough experiencing another drop in house prices resulting in 1.21% decrease year on year.

The biggest % gains were in West Berkshire and Basingstoke and Deane who both saw year on year increases of over 3%.

Average Prices by House Type: July 2017

Depending on the type of house you want to buy, prices vary considerably across the region. A detached home in Windsor and Maidenhead will cost you an average of £856,928 compared to a relatively modest £516,235 in Basingstoke and Deane.

The Bracknell area continues to outperform Wokingham and Reading with detached house prices. A detached home in Bracknell will cost you £36,041 more than in Reading and £15,736 more than in Wokingham. However, Wokingham rises above both Reading and Bracknell when it comes to the cost of semi-detached and terraced properties which pushes the average price in the area far above both neighbouring areas. This is largely due to a greater number of these kinds of properties being sold in the area as a result of there being a greater stock on the market in Wokingham.

A flat in the Thames Valley will cost you, on average, £233,100 which is still 3.06% higher than the UK average for a house.

House Prices: The Current Outlook

After the annual anticipated slow summer holiday period, markets in the region have been showing good signs of activity for the first three weeks of September. UK mortgage lender, Halifax, has reported an increase in borrowing which they believe to be a result of the continued shortage in housing combined with strong employment growth. This follows a nationwide dip of 0.1% in the House Pricing Index experienced in August. The outlook for September is therefore a moderate increase in the value of property with more mobility in the markets.

house price index uk

The House Price Index is expected to rise for September 2017. Image via Flickr.

As people look to get their homes ready during Autumn in the hope of achieving a sale and (hopefully) to move by Christmas, we have seen an increase in the number of vendors coming to market as well as commensurate rises in the number of viewings being arranged.

Property Assistant: Buying and Selling in the Thames Valley

If you are looking to bring your home to market during the autumn then Property Assistant is well placed to deliver a tailor made solution to get your home ready to achieve the best price. Not only can we advise on presenting your home and putting together a marketing plan but we can also arrange for a smooth purchase. We don’t disappear once your offer has been agreed but we take the time to look after your sale from viewings through to completion. And, if you are looking for a home in the area, we can also help you find your next dream home. You can download our free eBook – ‘House Buying Guide’, here.

Contact us today on 0118 912 2370 to discuss how we can help with all your property needs.

Where is the Information for our Market Reports Derived?

Each month, the UK Government publishes retrospective information relating to the recorded values of homes sold in the previous months (UKHPI). Collected by HM Land Registry, the prices reveal a snapshot of the market about three months ago with the information being a result of sales negotiated prior to completion and being registered with HM Land Registry.

It’s important to bear in mind that the figures stated on our monthly market reports are therefore based on historical data and do not reflect the current trends of movement on the market. The information we provide on the state of the current market is reflective of trends experienced now in terms of the value of properties coming to market, the commensurate value of offers being made against asking prices and the number of sales agreed.

Featured image via Pixabay.

Thames Valley House Prices: April 2017

What are house prices doing in the thames valley-April 17

Want to know what house prices in the Thames Valley are doing?

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Thames Valley House Prices: March 2017

UK property prices march 2017

Taken from actual transactions recorded by the Land Registry for March 2017, the UK House Pricing Index.

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Thames Valley House Prices: February 2017

uk house prices feb 2017 thames valley

Find out how house prices in the Thames Valley performed in February 2017