Residential Property Trends – In the South East
London residential property has always been an eclectic mix of rent or buy, buy to live in or buy to invest, spanning a huge breadth of value. According the Guardian, this month rents across Britain fell in 2018 for the first time in a decade.
The Housing Market
At the same time they also reported that UK house prices unexpectedly rose at the fastest monthly rate in almost two years in December. This is according to the Halifax Building Society, despite warnings over the potential impact of our unruly Brexit likely in March. The Nationwide are less optimistic and are predicting after a sluggish year for house price inflation, against a backdrop of heightened political uncertainty and following years of rising prices that have reduced the affordability of properties. On an annual basis, house prices rose by 1.3% in the three months to December, marking the weakest year since 2012.
An article in “The Week” this month is a bit more concerning reporting one lender as saying in the event the UK crashes out of the EU without a deal on 29 March, “London, with its exposure to international business, is in the line of fire”.
Continued uncertainty around Brexit has led to the most negative outlook for house sales in the capital in 20 years, according to a report from the Royal Institution of Chartered Surveyors (RICS). Some 41% of surveyors expect sales numbers to fall in London over the next three months rather than rise, “the most pessimistic reading since RICS began its housing outlook surveys in 1999”, says Sky News.
Many surveyors are finding that homeowners are opting to stay put until there is more clarity on the nature of the UK’s exit from the EU. Others also cited changes to stamp duty and lack of housing supply for declining activity on the market.
What Can We Do?
Genson are a specialist in high end home refurbishment. Now may be the time to refurbish rather than move, adding value to your home whilst the market stabilises. A new kitchen and improvements to bathrooms add real value to properties. This is an area where Genson have years of experience. Please get in touch if you want to know more about our design, construction and project management skills.