Recent events in the UK have been instrumental in what the real estate industry will unfold this new year. Consider how Brexit will continue to affect the mortgage industry in terms of the lender’s interest rates and the buyer’s confidence. In fact, the UK is expected to leave the European Union very soon.
The question is, what does this mean for the economy of the United Kingdom? How will this significantly impact the real estate industry and mortgage market? Keep on reading to find out more about what lies ahead for the real estate market.
‘Wait and see’ approach
It’s worth noting that there’s now a reassurance in the mortgage market that comes with a five-year administration ensuing after the recent general election. In recent times, homeowners had no choice but to adopt the ‘wait and see’ approach, as far as buying and selling homes were concerned.
This year, however, homeowners have started to take the plunge into buying and selling. In fact, statistics show a total of 35,010 new first-time buyer mortgages were completed in the summer of 2019. This year, it is expected that more first-time buyers will enter the market and will continue to grow. As a result, there’ll be a further increase in the housing market in the months to come.
Bottoming out and rising up
It’s been apparent that the regions have outperformed the real estate capital in recent years. This trend has been ongoing and may continue to do so this 2020. Experts, however, suggest that the London market has now reached a low point. But how will you know whether or not this is true?
First, there has been a growing demand for property that has started showing this 2020. In fact, it is said that the spring for the property market is likely to begin in mid-January.
Second, it’s possible that the mortgage rates will become highly attractive this 2020, given the soaring competition among lenders. As a result, people will even have more reasons to buy and sell.
Third, experts suggest that the first half of the year will have more activity than the second brought by the recent General Election and clear trade negotiations. Overall, you can expect average prices to rise by two to three per cent this 2020, which is a conservative growth in historical terms.
Degree of certainty and flurry of activity
The unpredictable political landscape in 2019 had caused a cloud of confusion and a bit of uncertainty over the land. Now that the political impasse has been resolved and the UK will be leaving the EU, you can be certain that the activities in the real estate industry will begin to flourish again.
In fact, a recent study reveals that a quarter think the number of sales made to first-time buyers will increase and over half expect it to stay the same. The same study shows that a third expect demand to decrease and a further quarter think supply will increase.
Amid all these statistics and studies, one thing is for sure that the real estate market needs reassurance from the government by committing itself to implement proper regulations into the sector. It should also consider introducing digital logbooks for a more interactive, streamlined, and transparent process for both home buyers and sellers.
The UK’s real estate industry remains to be a strong sector, amid the challenges it faced last year. We can only hope for a bright outlook and utmost stability this 2020, particularly in the property market for the benefit of both home sellers and buyers.
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