After the referendum of the UK’s EU membership in June 2016, there has been a considerable amount of debate on whether the uncertainty in the housing market is a good or bad thing.
“According to the National Association of Residential Letting Agents, homeowners in London could see their home value drop by around £7,500.” Source: BBC
There are numerous factors that may contribute to an expected decrease in housing prices, such as uncertainty on the UK’s future with the EU and a crease in demand from overseas buyers.
The current average age for a first-time homeowner in the UK housing market reached 30 for the first time since data has been recorded, an incredible seven-year increase from the 1960s.
With an expected growth in first-time property buyers in the UK, property development could become a highly profitable sector. Because the UK continues to miss its target of building 250,000 new homes every year, demand for new houses is expected to continue to increase.
“Landlords are buying far few properties and that leaves a gap in the market for first-time buyers. While landlords were hit with a 3 per cent stamp duty surcharge on property purchases back in April 2016, in contrast most first-time buyers were effectively awarded stamp-duty-free status in November 2017.” Miles Shipside, Rightmove.
First-time buyer mortgage approvals continue to slowly increase in the past year. Despite a small increase of 1%, it’s expected that first-time homeowners can create a mini-boom in the housing market as younger couples looking to buy their first home.
Supplying a demand for the UK housing market can be viable but costly without financial backing. At Hunter Finance, we offer flexible, affordable development finance that can help finance your property development. What is development finance?
If you’re interested in supplying a demand for the UK housing market, Hunter Finance has a wealth of experience with terraced properties development.