5 things to expect in the UK property investment market in 2018

2017 was an eventful year for the UK property investment market. The shock of Brexit shook him to the core. Those planning to attend UK property auctions to purchase a second or more residential properties were hit with an additional 3% stamp duty. The resignation of Mr. David Cameron, the then British Prime Minister, took the pound to its lowest financial value in the last 31 years internationally. This also affected the UK property investment market!

This series of events does not seem to stop even when 2017 is about to end. The Bank of England has recently introduced changes to the mortgage/loan rules. These changes have significantly affected the investment plans of those who had applied for mortgage/loan approval to purchase residential properties at home auctions. Now, all financial institutions and lenders are reviewing all kinds of records for every property associated with the applicants’ portfolio. These changes in mortgage/loan rules have really changed the way the UK property investment market operates.

What else is expected in 2018?

• 2018 will also be an eventful year for the UK property investment market. As for the reason, Brexit is likely to strike again. Both the UK and the EU have scheduled a meeting on the matter. This meeting will largely determine the image of the UK property investment market.

• In case you are thinking of attending the UK property auctions to buy a residential property, wait a moment and see the outcome of the Brexit meeting between UK political officials and EU members . It should play a waiting game even more because the EU is now trying to come up with a plan to postpone the Brexit meeting with the UK.

• The outcome of the 2018 Brexit meeting between the EU and the UK appears to be a mix of good and bad news for investors. Those who planned to attend home auctions to sell their residential properties to get some ROI (return on investment), are likely to face a 0.5% to 2% financial loss. This is worrying news for homeowners.

• Those who wanted to buy property in London may have a smile on their face as London house prices are about to fall. This is good news for those who wanted to invest in property in London. This will also restore the grip that the British capital has been losing among investors in recent years.

• But you shouldn’t limit your investment plans or vision to just London properties. Thanks to the massive rise in house prices in other cities like Manchester, Liverpool, Birmingham etc. These cities have seen house price growth from 10% to 17.5%. Many investors have even started attending property auctions in these areas of the UK.

What is the best advice?

2018 is set to be a good year for those planning to attend house auctions to buy a house in London. But it could be a bit difficult for the owners. Thanks to the uncertainty of Brexit and the volatility of house prices. Therefore, you are left with no choice but to contact experienced real estate investment agents in London.