The UK property market has been an interesting one to watch in the past few years due to what it brings. Most recently, the Brexit issue has affected several economic aspects in the UK, and the property market is no different. As we start 2019, the prospects for this market seem dim with the ever-looming Brexit issue. With the hangovers of other notable events such as the 2016 referendum still looming, it is hard to imagine what the property market holds for the UK economy in 2019. This article will look at some predictions for the UK housing market in 2019. Read on;
London is the largest city in the United Kingdom, and its housing market has been on a downward trend for some years now. In the few weeks leading to 2019, there have been a lot of talks of people who own homes in London selling their property. They are thought to do this due to the more promising prospects of investing in homes located towards the Midlands or North of England. Statistics indicated that house prices were expected to fall by around 17% by the end of 2019, but this was not very accurate. The same polls predicted a 0.3% depreciation for 2019 and a subsequent increase by about 1.5% in 2020. The London market is an attractive one for foreign investors who are known to move anytime they see a sign of weakness. Brexit had a massive impact on this city, and it explains why the depreciation rates were predicted to be higher than usual. As much as Brexit has been problematic for London, the prices have not gone down to the extent predicted by experts over the last two years, but the value given for 2019 may be realistic.
Issues Overflowing From 2018.
The UK housing market dragged a lot in 2018 due to the lack of homes on real estate agents’ books, affordability matters, prospective interest rate rises and the uncertainty caused by Brexit. If you look at the trends from 2017, the market has been on a slump, and it is unlikely that the market will grow in 2019 since these outstanding issues cannot be cleared in one instant. However, things will not be that bad since the house prices growth will continue to falter in the first half of 2019. By the middle point of the year, things will be expected to hit an equilibrium and prices are expected to stagnate for a while.
This stagnation can be attributed to the lack of new homes being listed for sale. Not many houses have been listed to replace those that have been sold as seen in 2018 and this remains as a looming issue. This has been recognized throughout 2018 as the number of homes listed for sale remained very low, some of the records even breaking records.
Out of the many issues, the uncertainty surrounding Brexit seems to be the most significant one. The increased hesitancy causes the demand that has been tailing off consistently since this matter began by investors. For 2019, the uncertainty is unlikely to dwindle, meaning that investors in the home market will opt to act carefully and wait for a solution from the concerned authorities. If a deal can be reached on the withdrawal before the year hits halfway, then things are expected to pick up steadily. However, the mortgage rates are not expected to increase as changes in any monetary policies are anticipated to be minimal through 2019.
In summary, it seems unlikely that the UK housing market will improve in 2019 and the best we can hope is for things to remain stagnant. However, this depends on the Brexit matter since it keeps on being dragged and this is what is affecting the market. However, experts believe that by the time 2020 will begin, the matter will be solved and this could be a positive turn for the UK house market.