Richard Butler Creagh on London Property Market Trends You Should Know
Welcome to the Richard Butler Creagh blog. London has experienced a heavily disrupted 10-year property cycle. Prices in the capital capped out in July 2017 and have been declining slowly ever since. But healthy economic growth along with an insulated lettings sector suggests the market may not depress for much longer.
The market for first-time buyers is nonetheless relatively healthy– this could be an advantage for London buyers with an eye out for lower prices. Of course, Brexit is not the only factor at work here: lack of affordability, sharp increases in stamp duty and land tax, the possibility of a fresh general election, as well as Brexit-related job uncertainty all play a part.
London lettings are also affected, steered by similar factors.
While landlords may have wanted to offset the government’s tax regime by raising rents, uncertainty surrounding Brexit seems to have forced the vast majority to forfeit this to maintain a steady income. However, like the sales market, the limited supply has insulated the lettings market from more severe changes. This lack of supply has meant that, despite the political climate, rents are actually still increasing.
On the other hand, millennials are leaving London behind. Millennials relocating outside of London have fuelled rental growth in Manchester, Leeds, and Birmingham, with house prices in Birmingham rising twice as fast as the national average. Nevertheless, buoyed by healthy economic growth and the continued scarcity of new homes in the capital, the market is unlikely to depress much further. Indeed, spurred by younger buyers and renters, the market outside of London is already showing strength.
Stay up to date with the developments in the property development and bridging finance market by reading about Richard Butler Creagh online. Like the official Facebook page of Richard Butler Creagh here. Show your support online by following Richard Butler Creagh on Twitter here.
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Stay up to date with the developments in the property development and bridging finance market by reading about Richard Butler Creagh online. Like the official Facebook page of Richard Butler Creagh here. Show your support online by following Richard Butler Creagh on Twitter here.
Watch this video about Henly Finance and what they can offer you:
