As we reach the tail end of the year, annual reviews and housing forecasts for 2018 have provided a timely insight into the current state of the UK property market. Following last week’s release of Halifax and Nationwide’s respective figures on the housing market, Knight Frank this week released its outlook report for the coming 12 months.
Taking into account the state of Brexit negotiations, coupled with the Bank of England’s recent decision to increase the base rate of interest, house price growth is projected to increase 14.2% cumulatively between 2018 and 2022. Moreover, in London house price growth is on course to reach 13.1% over the next five years. The report anticipates that once the terms of Brexit have been officially decided, there will be a significant increase in the amount of property transactions taking place across the country.
The past 12 months have been an eventful period for the residential market. In April, changes to tax-relief on mortgages were introduced, followed by new rules regulating lending to large-scale investors in the buy-to-let market. Despite this, the demand for homes continues to outweigh supply, offering significant capital growth for homebuyers and long-term gain in rental yields for landlords. In a market renowned for its competitiveness, a well-researched investment strategy supported by fast-access to finance is vital for those seeking to consolidate and expand their real estate portfolio.
Over the coming weeks, MFS will be releasing its final report for 2017, reviewing the key political and economic trends defining the property market this year – ranging from the snap General Election and resulting hung parliament through to the introduction of stamp duty reform in November’s Autumn Budget. It will also touch upon the findings from MFS’ market intelligence reports which have become industry-renowned for their insights into investor sentiment, and offer a critical outlook of the coming 12 months.
To find out more about MFS’ upcoming report, or how bridging finance can support your property investment strategy, speak to a member of the team today.