What Will Happen to the Property Market in 2018?
8 January 2018
There’s an old expression that you need to have in mind when you read this article ‘prediction is very difficult, especially if it’s about the future’.
That said, there are indications and trends developing that help us to plan for 2018 and these are at least some of the main points we’re likely to see this year.Despite a somewhat shaky business model Purplebricks and similar online estate agencies have disrupted the status quo for estate agents. We’ll see many high street firms begin to respond with cheaper online only (often pay upfront) options. This is unknown territory for many and could lead to a ‘cheapening’ of their services.Tenant letting fees were due to be banned in late 2017 but agents won a reprieve when parliament was preoccupied with elections and Brexit. It is likely to happen this year and will decrease agent’s incomes overnight by around £3,000 a month for many. Expect to see redundancies and amalgamations in early 2019.Despite weaker demand from buyers, prices will likely hold steady in key areas outside London due to a lack of supply. This is caused by insufficient new building and many sellers sitting tight as, ironically, they cannot find something to move to…due to lack of stock.The Brexit effect. Impossible to predict so we’re not going to!Buy to let collapse. A weaker market and increased landlord taxes make buy to let a less tempting proposal. On the plus side, this means less competition for first time buyers, increasing their chance to buy a home.2018 will be the year estate agents have to work to sell their property which might come as a bit of a shock to those who have been used to listing homes and letting Rightmove make the sale for them!
What are your predictions for the property market in 2018? Leave your thoughts in the comments below.