3 Things You Need to Know About the Housing Market in 2018
“Housing Market’ in the UK is now in the midst of the whirlwind. There are a number of reasons pertaining to the same. But, the most prominent one can be the disorderly exit from the European Union which has cost the Housing Market dearly. In this article, we will have a glimpse of the important happenings which surrounded the former during the year 2018.
The sharp dip in Price:
As per the official data, there was a sharp dip in the average house prices when compared with the rest of the UK. Average house prices in London nosedived 0.7% in the year to July, making it the third month in five months of decline as per the Office for National Statistics. Even the rental prices also had its due effect in terms of negativity. The estate agents in London also had to bear the brunt of the same.
During early 2016, London’s housing market prospered and there was 14.8% of annual price growth. Later on, there was a decline with the number of transactions as well as the price growth slowing down considerably.
Everyone knew that the London home sales are falling. The report by the Royal Institution of Chartered Surveyors, suggest they’re now at a record low. The real estate market went for a toss totally as they sold an average of just 8 homes every three months even as brokers including Foxtons Group Plc shutter some outlets to cut costs.
Increase in Incentives:
The real estate industry is waiting for another major happening in the year 2019 as the government is considering an additional stamp-duty tax especially for the overseas home buyers in England and Wales. Already the demand from Asia has waded owing to a succession of tax hikes. In order to keep in pace with the same, the real estate developers have laid hands on discounts. Apart from that, they are also offering incentives to the purchasers. The prominent one being the Black Friday discounts which amount to 50,000 pounds in order to complete the deal.
In order to get a glimpse of the housing market in 2018, we have showcased the scenario which prevailed in Galliard and Barratt Developments Plc. This concern was also prepared to offer a portion of the stamp duty bill also for certain property buyers. Astonished? Not only that…they were ready to travel the whole world in search of home buyers and the countries even include Saudi Arabia, Singapore, and also Hong Kong.
According to the data compiled by Molio London, the number of completed properties went on increasing. But, the completed properties couldn’t find any prospective buyers. This scenario is said to be the nagging one in the real estate industry. This sudden change were witnessed only this year and even the well reputed Crest Nicholson Holdings Plc closed its London division stating that the aftermath is even worse than anticipated….
The real estate agents in London bridge also had to try some innovative strategies to overcome such a scenario. As per a research, the new-home sales fell by 25% this 2018. Apart from real estate agents, many companies have shut down their operations owing to the not-so-good scenario in the rental market.
Countryside Properties Plc has been shifting its focus away from London and the southeast of England. Berkeley Group Holdings Plc, the London specialist, has also headed into the regions, selling homes at its first project in Birmingham and acquiring two further sites for development. Telford Homes Plc. is moving away from new home sales to rentals.
The home marker’s scenario during the year 2018 was really worse. Many real estate companies were forced to change their business or shut down their business in the year 2018. But, in the year 2019 many are hoping for a drastic change for the goodness of the housing market.