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Yorshires Housing Market Prediction 2019

Yorshires Housing Market Prediction 2019

Yorkshire Housing Market Prediction 2019

The question on everybody’s lips is what’s going to happen to house prices in 2019? Chris from Home House Buyers has a look at the property market and makes his predictions on the Yorkshire Housing Market

Many professional are warily optimistic but with the recent Bank of Englands ‘worst case scenario’. Their optimism seems too good to be true with the way the Brexit deal is panning out. The BoE said that if the UK has a disorderly no-deal Brexit that could lead to a recession and a 30% drop in house prices. 

Chris from HHB agrees that alot will rest on how the UKs economic conditions evolve. ” Even though unemployment is at a 40 year low and interest rates are at there lowest we have ever seen, the fear of a recession will dampen demand also the sqeeze on house hold budgets will have an effect on how people spend their money”.

He goes on to say ” If they have a more positive outlook, the uncertainty lifts and the unemployment rate continues to drop, then the economy can pick up in the year ahead. Household incomes have been squeezed along with the cost of living. Hopefully, interest rates which are predicted to only rise at a low rate and which look to be kept at that level for the years to come.

We here at Home House Buyers believe as a Yorkshire company that the North of England will fare better than the South in 2019 and probably beyond. We also believe Yorkshire will see the second highest housing price increase growth across Britain over the next five years. By the end of the next five year period, we believe an increase in house prices of around 20% in Yorkshire. 

Over the next five years across the UK, we are expecting to see an average growth of around 15%. Scott McArdle, head of acquisitions at Home House Buyers has said ‘The tradition fo the north-south divide is going to flip onto its head with the north far outperforming the south. The Midlands, North and Scotland are going to see the biggest rises. Brexit will continue to impact the capital and surrounding areas.’

The Halifax has released a statement saying that they are very optimistic for Yorkshires property market that’s based on a Brexit deal being agreed. Yorkshire has been forecast to become the second-best performing area in the next five years with a growth of 12%  between 2019 and 2023. Teeside has been predicted to be the fastest growing area with a rise of 14%. Yorkshires rise starts with a 0.5% rise in 2019 and then a 1% rise in 2020: a 3% rise in 2021 : 2.5% in 2022 and 4.5% in 2023.

The London housing market at this moment has been hit the hardest. Certain areas where affordability is at its lowest have seen the market slow down and in some cases, revised prices. Selling a home fast has become a thing of the past with properties lingering in the city for months on end and some taking up to a year before achieving a sale. 

This isn’t the case in areas such as Birmingham & Wales where growth continues to rise and the affordability measures are more sustainable. Properties are selling quickly in Birmingham where they have an average sale time of 47 days. Many of the UK cities apart from London are seeing a good level of growth and we are expecting this to continue. London is the only city which is lagging behind the UK average. This is due to the fall in prices over the next couple of years.

 This is in contrast with the North East & Yorkshire where growth is expected to be the strongest. Eventually, when the UK leaves the EU these areas are going to feel a sense of relief which will give them a ‘relief bump’ in the housing market. By 2023 house prices will of lagged behind wage rises over the last few years and will likely rise by around 6% to bring them into line.

A key factor of affordability is keeping up with your mortgage payments. This is heavily weighed on the interest rates staying low if they are to change dramatically this will affect the movement in the housing market. With interest rates at a record low, this is a serious possibility that they will rise, by how much we don’t know.  The rate of the rise is likely to be very moderate with a rise of around 1.25% by 2023 forecasted by the Office for Budget Responsibility. This all based on the UK leaving Europe with a favorable deal for Brexit.

 



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