The housing market has stabilized since the financial crisis, it looks like we’re back on track, with high levels of demand and rapid growth in recent years. Until Brexit happened, this uncertainty combined with unaffordable prices began to steadily reduce demand. Of course, the levels of activity vary across the country, but a general picture shows that estate agents have seen lower transaction volumes in 2017 and this trend is expected to continue into 2018, picking up slightly due to the stamp duty holiday for first time buyers.
A report released by Winkworth estate agency states: “We expect attitudes towards moving home to remain cautious. With buyer interest at an historic low, we experienced low levels of transactions and we expect this to remain the case throughout 2018, albeit picking up modestly”.
The overall picture is that with more 1st time buyers able to take a step onto the housing ladder transaction volumes should increase. While prices will be stable, increasing slightly in some areas of the country. If Brexit sees a favorable outcome activity in London will take an upturn. The weak pound has made up for uncertainty over Brexit and has seen a 7% increase in property purchased by overseas investments.
In regards to rentals, many landlords will choose to sell off due to the changing dynamic of the buy-to-let sector; which will further push up rental prices slightly.