For years, the people of Britain have been known for the fact that most of them choose to own houses and not rent them. However, the recent soaring prices of buying houses, over the past two decades has influenced this factor causing more people to turn to renting. However, this is not the only factor contributing to the rising number of renters in the country. Other factors include the financial crash that happened in the year 2008 and the departure of the United Kingdom from the European Union.
Like in any other part of the world, the British housing market is extremely unpredictable. Despite the uncertainty, citizens looking to purchase houses tend to try and anticipate the market conditions beforehand. Something that can be said about these predictions is that no one is ever sure whether or not they are accurate. The reason why this is so is that it is hard to predict causal factors like financial crash and even health crises like the Corona Virus outbreak. All these factors could either negatively or positively affect the market.
The British Housing Market in 2020
A lot can be predicted about the foreseen future of the real estate market. Below are some factors to consider when predicting the state of the market:
1. The Current State of the Market
This is a very important factor to consider when trying to predict the future state of the market. In a recent statement about the housing market in the UK, the Nationwide Building Society, a mortgage firm, suggested that there had been a fallback in its growth. The report showed that the cost of purchasing a house in the UK has increased by a tenth in January 2020. This growth comes after the zero-growth period in December 2019. The report goes further to say that the growth of the housing market has been low for the past six years. The state of the market in January alone is enough to help you predict what the market holds in the months to come.
2. Opinions from the Experts
Despite the low state of the United Kingdom housing industry at the beginning of 2020, experts in the sector are very hopeful about the months to come. According to Richard Donne, an analyst of the property sector, the market is likely going to experience a 3 per cent rise by the end of the year. Capital Economist’s Chief Property Economist also predicts a slight growth in the market by the end of the year. Other professionals in the market like Russel Galley of Halifax Bank and Lloyds Banking Group and Andrew Montlake of Coreco seem to have the same opinions as the first two. On average, the analysts seem to agree that the industry is set to experience a growth of at least 2 per cent.
However, some analysts in the industry still maintain pessimistic expectations from the real estate sector. According to Miles Ship-side house valuation online remarks, the political state of the country and the ongoing negotiations with the European Union are set to derail the growth of the market. This means that there probably won’t be any change in the state of the market this year. A few other analysts echo these sentiments, others citing a research done by Royal Institution of Chartered Surveyors. The study indicated that the market is set to remain at its current state or experience a negative growth.
3. The country’s political and financial state
It has been determined from experience that an increase or decrease in the financial state of the country significantly affects several sectors, including the real estate market. The political state, like the relationship with the European Union, affects the sector as well. This is because it affects the financial state of the nation.
House Valuation Online
Online house valuation sites help participants in the real estate sector determine the cost of their property before selling or buying. These sites use algorithms that factor in the state of the market when determining the cost. The sites are also important when it comes to predicting the future and state of the market since they use data from various sources.
There isn’t really a way to determine who is right about what the future holds for the market because there is no way to correctly predict what the future hold. This means that only time will tell what happens in the industry.