Written By Em

In the run-up to Brexit in March next year, much focus in 2018 will be on what house prices are doing and why. So, what will this year have in store for the property market?

Alongside the economic impact of the Brexit process, prohibitive levels of Stamp Duty have dragged the property market in 2017. This has led to a drop in the number of investors purchasing buy-to-let properties last year, according to investment firm Properties of the World. Many investors have instead turned to commercial properties, such as offices, hotels and care homes, which don’t incur Stamp Duty.

Investors’ ability to offset their finance costs (including mortgage interest) against their rental income has also led to a drop in investment in buy-to-let properties, as it has dramatically reduced the level of available profit.

Jean Liggett, the CEO of Properties of the World, says: “These changes, first brought in by George Osborne, will continue to reduce demand by investors for residential property in 2018.

“Instead, investors will increasingly shift their focus to purchasing properties that provide them with capital growth, along with non-cyclical commercial opportunities, such as student accommodation and hotel room investment. This means looking to key parts of the UK that provide high returns, such as Manchester, Doncaster, the North West and the North East.”

When it comes to capital growth, Properties of the World is projecting house price rises in 2018, though not at the same level that the market has seen in recent years.

Regional markets will fare well, the firm predicts, with Yorkshire and the North West demanding particular attention. Stamp Duty changes, Brexit and political uncertainties will all contribute to a slowing of the market. However, those will be counterbalanced by an uplift in first time buyers, with the recent Stamp Duty exemption announced by Chancellor Philip Hammond doing much to invigorate this end of the market.

Liggett believes: “2018 will be a year characterised by uncertainty when it comes to UK property investment; companies will need to prepare to weather the storm. At Properties of the World, one strand of our approach to this is to open an estate agency. Whatever occurs in the UK economy, people will need somewhere to live. As such, the estate agency arm of the business will help to future-proof the organisation, while ensuring that we continue to respond to demand-led property opportunities, despite shifting priorities.”

With so much uncertainty hanging over the UK economy, it is perhaps unsurprising to have seen the property market slowing as we moved into 2018. However, as Liggett points out, people will always need homes. The way in which those homes are provided may shift, such as the steer away from buy-to-let that we saw in 2017, but this will, in itself, open up different opportunities to those with an eye on staying ahead of the market.

What are your predictions for the property market this year?

Savvy landlords looking to capture reliable renters in a tough market could use the latest home trends to appeal to modern tenants, who may be more likely to look after your property if it’s presented to a high standard.

With 2018 now officially underway, we bring you the top ten home trends of the year, as reported by Pinterest.

The image-sharing site has unveiled its annual report, the Pinterest 100, which forecasts the global trends for the year to come.

The trend report for 2018 reveals 100 of the top trends for the year ahead, inspiring people on everything from fashion and interior design, to food and travel.

Analysing what Pinterest users are searching for and saving around the world and across a range of categories, the site can predict upcoming, mainstream trends.

With a strong community of 200m users, Pinterest believes that its trend predictions are here to stay and are not simply a temporary hot trend of the month. This includes in the home category, which generates over 14 billion ideas and has had a 75% increase in pins year after year.

Here are the top ten home trends for 2018 from the Pinterest 100 that landlords can use to appeal to stylish renters:

1. Resort-inspired style 

Spa-inspired bathrooms and rattan furniture bring holiday vibes to a home. Saves for “spa bathrooms” are up by 269%.

2. Metallics 

Metallics complement many colours, and mixing different finishes together adds an extra stylish element to your property’s décor. Saves for “mixed metals” have risen by 423%.

3. Terrazzo

The forgotten flooring of the 1970s is set to brighten up ceilings, entryways and everything in between in 2018. Pinned pictures of “terrazzo” have increased by 316%.

4. The fifth wall 

A statement ceiling works as a fifth wall, transforming a room from the top down, whether through bold wallpaper or a striking lick of paint. Saves for “statement ceilings” are up by 310%.

5. Bone inlay

Bone inlaid tiles are set to be popular this year, with saves for “bone inlay” having risen by 207%.

6. Herringbone patterns

Add an extra dimension to your property’s walls with grey tiles in herringbone patterns for a modern twist. Saves for “herringbone patterns” have soared by 131%.

7. Statement doors 

Bold painted front doors are on trend for 2018, becoming the new way to boost the kerb appeal of your property. The number of saves for “colourful doors” has increased by 121%.

8. Patterned plants 

Houseplants are not just about one shade of green in 2018, but multiple colours and patterns. In fact, saves for “patterned plants” have jumped by 533%.

9. Big wall art 

Don’t leave your property’s walls blank in 2018 by hanging some wall art, whether it’s a large poster, work of art or photography print. Saves for “big wall art” are up by a whopping 637%.

10. Sage

Use neutral sage tones to soften one of your property’s rooms, such as the living room. Saves for “sage” have increased by 170%.

If you’re looking to update your property for the New Year to appeal to savvy tenants, use these home trends for some inspiration – the possibilities are endless!

A record number of properties were sold for less than the asking price in November, according to the latest Housing Report from NAEA Propertymark (the National Association of Estate Agents).

Last month, 85% of properties sold for less than the asking price – the highest number seen since records began in 2013. This is up from 78% in October, and just higher than last November, when 84% of properties sold below the asking price.

Just one in ten (12%) properties sold at the original asking price in November – the lowest number on record.

The amount of properties available to buy on estate agents’ books dropped by 19% in November, from an average of 42 per branch in October to 34. This is the lowest number of properties available since January 2016, when 33 properties were available on average.

Demand from house hunters dropped by 5% in November, to an average of 333 buyers registered per branch, from 349 in October. This is the lowest since September 2016, when the same figure was recorded.

In November, the proportion of sales made to first time buyers rose to 27%, from 22% in October. This reflects the higher levels seen in June, when 30% of sales were made to these buyers.

The total number of sales agreed per estate agent branch dropped for the first time since July, from an average of eight per branch in October, to seven in November.

The research also reveals that a third (33%) of estate agents believe that the Chancellor’s announcement around Stamp Duty relief for first time buyers will not do enough to help them get onto the property ladder, while a further 20% think that it will have no impact on the number of first time buyers entering the market.

54% of agents would like to see more affordable housing, 31% would like 100% loan-to-value (LTV) mortgages, while 13% believe that discounted surveyors’ costs would help first time buyers get onto the ladder.

Mark Hayward, the Chief Executive of NAEA Propertymark, comments on the findings: “A record number of properties sold for less than the original asking price last month, but, despite this, demand for housing and the number of homes available decreased. We usually see a slowdown in the property market around Christmas time, but our November data shows this happened much earlier this year. It’s clear that more and more potential buyers and sellers have put their plans on hold early, so they can start afresh next year.”

Are you adopting a wait-and-see approach when it comes to property purchases until after the festive period?

Families are being priced out of the Government’s Help to Buy scheme, as eligible houses have become extinct in a quarter of London boroughs, according to independent estate agent James Pendleton, which is based in the capital.

The Help to Buy London scheme is an equity loan provided by the Government that covers up to 40% of the cost of a new build home worth up to £600,000.

However, not a single house below the £600,000 threshold was found for sale in Camden, Hackney, Hammersmith & Fulham, Islington, Kensington and Chelsea, Lambeth, Tower Hamlets, or Westminster.

Instead, buyers are forced to either limit their property search to flats or look further afield. In Barking, Lewisham and Southwark, just three houses were found for sale in each borough below the threshold, while there were four each in Greenwich and Wandsworth.

There were just 603 for sale London-wide, with Croydon boasting the most (59), followed closely by Richmond upon Thames (57).

Across the entire capital, there were 13,156 new build houses for sale above the £600,000 threshold, highlighting the severe shortage of appropriate properties being built for families in London.

In fact, houses account for just 2.7% of London’s new build property stock below £600,000, with one and two-bedroom flats making up the majority of the market.

Lucy Pendleton, the Founder Director of James Pendleton, says: “We know that house prices are overinflated in parts of the capital, but this research really highlights the scale of London’s property crisis for families.

“This research shows that, for those among them who need a leg up, a quarter of the capital is off limits.”

She continues: “With houses making up such a small proportion of London’s new build property stock below the Help to Buy threshold, the reality is that families will be forced to stay in cramped and uncomfortable accommodation.

“This is a hammer blow for a key demographic who desperately need the room and outside space a house can provide, but have to fight tooth and nail to secure a property in the right area, if any are available at all.”

Pendleton concludes: “Mass extinction of Help To Buy houses has begun, exacerbated by the upper threshold which hasn’t moved in four years, and contagion across the rest of London is inevitable.”