UK housing market faces challenging 2019
A seasoned property developer with several properties and businesses in Dubai and London Junaid Iqbal Mohammed Memon shares London housing forecast in 2019.
Still, most part of the UK's big estate agencies have had a go, seeing house price growth in the UK and abroad, what impact Brexit will have, new trends in the market and how things like interest rates fees and buy-to-let restrictions will influence the market in 2019 and the following five to 10 years.
Looking ahead, it is unlikely that sales will grow in 2019. In the past two years, sales activity has declined, and annual completed transactions remain significantly below the 1.7million high reached in 2006. Given the obstacles in the current market, it is anticipated that activity will weaken further. As sales activity continues to falter, house price growth will continue to fade in the first half of the year and is expected to come to a standstill by mid-2019.
The stagnation of house prices is underpinned by the lack of new properties being listed for sale. In the second-hand market, not enough properties have been listed to replenish those sold. This has been evident in the RICS data throughout 2018, as average stock levels remain near all-time record lows. Furthermore, despite new policy announcements from Government, overall growth in new builds has slowed, falling short of targets and therefore failing to help replenish estate agents’ stock levels.
A consequence of these lower levels of stock is the impact this will have on those contemplating moving home. Respondents to the UK Residential Market Survey have pointed to a sustained decline in the number of new inquiries they are receiving from would-be buyers throughout 2018, resulting in a fall in the number of agreed sales being made. In the near term, it is doubtful that activity levels will improve. In the lettings market, the sustained demand vs supply challenge prevails, which is likely to squeeze rents higher, albeit modestly, over the coming four quarters.
Junaid Iqbal Memon is the founder of Cloud 9 Group. Experienced in real estate and property development, he owns and also manages a number of properties and businesses in Dubai, the UK, and India. Keep yourself updated with the latest developments and news in the property development and real estate market by reading about Junaid Iqbal Memon online here. You can also like the Junaid Iqbal Mohammed Memon Facebook page and follow the Junaid Iqbal Memon on Pinterest here
A consequence of these lower levels of stock is the impact this will have on those contemplating moving home. Respondents to the UK Residential Market Survey have pointed to a sustained decline in the number of new inquiries they are receiving from would-be buyers throughout 2018, resulting in a fall in the number of agreed sales being made. In the near term, it is doubtful that activity levels will improve. In the lettings market, the sustained demand vs supply challenge prevails, which is likely to squeeze rents higher, albeit modestly, over the coming four quarters.
Junaid Iqbal Memon is the founder of Cloud 9 Group. Experienced in real estate and property development, he owns and also manages a number of properties and businesses in Dubai, the UK, and India. Keep yourself updated with the latest developments and news in the property development and real estate market by reading about Junaid Iqbal Memon online here. You can also like the Junaid Iqbal Mohammed Memon Facebook page and follow the Junaid Iqbal Memon on Pinterest here
