Check out this recent residential research on the UK property market
New research carried out by Frank Knight has outlined the state of the UK property market as of May 2018. The main headlines of the report are that growth has slowed overall although there remains a positive rate of change. Price growth across the UK is expected to be 1% in 2018 and 14.2% in total between 2018 and 2022. UK rental growth is also set to be around 14% between 2018 and 2022.
The five main factors at play in the market in current circumstances are:
- The balance between supply and demand for new homes
- Stamp duty remaining a curb on some transactions
- The North/South divide is growing
- Brexit and future interest rate rises
- Affordability pressures in some areas of the country
However, as we know, the UK is a big place and house prices are not equal across the board. Regional and local issues remain an important factor and some areas are set to do better than others. Looking at the overall growth of house prices from now until 2019, the report points out a 14.2% rise. But when you look at the east of England, this increases to 15.9%. That means property in the area is set to grow by 1.7% more in Norwich and the surrounding area than the rest of the UK as a whole. When compared to the predicted growth rate in London of 13.1%, investments in Norwich could yield 2.8% more over four years.
Of course, these are just predictions and there are several risk factors that could affect these rises. The uncertainty surrounding Brexit means there could be trouble ahead, especially in the event of a no deal scenario, which is proving impossible to predict in terms of outcomes. Interest rate rises are on the cards, which could mean higher mortgage payments. And increased property tax charges targeting` investors could also prove to be an issue.
However, here in Norwich it seems like we are better protected against a number of the major risks. Prices are not overly inflated here like they are in some other areas, which is allowing for more growth. The presence of a university and research parks also provide some stability in a time of uncertainty. Governmental commitment to the Tech Corridor running between Norwich and Cambridge also means the area is thriving in tech industries.
In short, the Frank Knight report points out what we already know, that Norwich is a great place to invest.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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