Be part of my journey: What to expect from 2018 London Property Market
January 3, 2018
I hope all of you had a lovely start to 2018. I must say that the past few weeks have been unexpectedly busy for real estate. Even though the London property market hasn't been at its best in 2017, many buyers have shown interest before the end of the year.
Political uncertainty has undoubtedly affected the number of transactions, yet, it doesn't mean investment will stop. People have been exploring new opportunities but it cannot be dismissed that London real estate will always sustain its value.
Property remains a safe haven for capital preservation. Both local and foreign investors/buyers need to know that demand for prime and secure investments will be attractive during the course of 2018.
A recent analysis released by Savills has indicated that commercial real estate is set to grow in the warehouses and student accommodation sectors. On the other hand, in residential property, “build to rent” schemes will gain popularity over the decline of mortgaged buy to let investors.
Mr Superprime, Daniel Daggers, partner at Knight Frank said: “I’d expect another shallow year in terms of transactional volumes in the Super Prime market, however, I think we are coming through the cycle and hope Q3 may be the start of a more positive outlook depending on political sentiment.”
Moreover, there are several factors that will play an important role. The Bank of England may be increasing the interest rate by 0.25% in Q2 but this shouldn't impact borrowers on fixed rates. As a result of the Stamp Duty cut and the £10bn boost to the “help to buy” scheme, first-time buyers will be in for a treat by saving £5,000 in properties up to £300,000. However, prices could rise by 0,3% according to the Office for Budget Responsibility.
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