Things have been uncertain in recent years with elections, slumps and referendums sowing worry for some but hope for others. What does a leading Estate Agent think will happen? Click here to find out…
It has been said that an ancient Chinese curse runs ‘May you live in interesting times’.
And times have certainly been interesting in the UK housing market for some years now. Estate Agents have been hard pushed to predict stability arising from the confusion of fraught political schisms and downward financial spirals.
For some, facing high house prices that continue to rise, something feels like it needs to change. How can this be sustainable? How can I ever afford to buy a house? Some people face the prospect of only ever being able to afford a house or flat in the event of a market crash. For others, perhaps with growing families, house prices are hoped to bring modest increases in equity – to fund a larger Loan to Value (LTV) deposit, even though the next house they will need to buy will also be higher in value because of this too.
For nearly everyone of us, the state of the UK housing market will impact on our day-to-day lives, affecting our quality of life and happiness in a most profound and unalterable way.
What does Austin Property Services thnk?
Sean Austin’s remarks:
We appreciate that no-one can predict accurately the future and this certainly includes if the value of your house or flat, how much it is worth, will rise or fall. That is obvious.
There are some things that can be predicted though, lets start with those.
Population numbers are increasing in the UK and as population we are a increasing older demographic. Many people choose to stay on, in their family home, surrounded by warm and rich memories, rather than follow a trend seen a few years ago of down sizing or seeking more supported living arrangements. Many people now stay in their own homes for as long as they can, assisted by Live in carers who support them 24 hours a day to be more independent. The housing stock at the top of the ladder is not being freed up to accommodate demand. Traditionally market demand would see property developers increasing work to build new stock but for several reasons this has not been meeting need for several years now. The sourcing of land for development being one obstacle that has been particularly tough on many new build projects.
This double pressure on the market has served and will serve to keep prices high for the foreseeable future. All economic markers available point to a decrease and long-term stabilisation in the rate of house price increase in the UK but a downtown in overall house values is very unlikely given the demographics driven housing needs of the population. People will still get divorced, married, grow in family size or shrink as sons and daughters leave home. The demand will remain high while supply remains low.
Overall this will see, quixotically after so much uncertainty, the next period of house prices fluctuations enter a period of great stability. What you will pay for a house or flat for sale in Weymouth now will be very close to the figure that you will pay for that same property in five years time.