What happened in the property market in 2018 and how things look moving forward.
The Property Market in 2018
With Christmas approaching it is a good time to take stock of what has happened in the property market this year and how things look moving forward.
Residential Sales Property Market
It has been a year of two halves, from January to June we saw the best activity levels since the Brexit vote. People had become certain of uncertainty and the market had lots of movement both in terms of buyers coming to the market and lots of property on the market.
In the summer the World Cup arrived and although England performed better than expected, the property market became subdued and this continued through the autumn. With the deadlines in the Brexit process now within touching distance, a large segment of both owners and buyers have behaved more cautiously in the second half of the year. However, this has led to a market in which the buyers that are active are very serious and is leading to a wide range of offer levels being made.
Our expert view is that the market at present needs a property to be priced realistically for it to stimulate interest levels. We then use our knowledge and insight to source the right buyer for each home at the best price.
In a realistic market buyers need to be reassured that they are making the right decision which with our rich trading history of having worked through all types of market conditions we are able to provide. Our advice can be backed up with historic statistical fact meaning potential buyers can see what we our basing our views on.
The Market Historically
The local market reached its previous height in 2007 before dropping in 2008/9. In 2010 the market started to recover and values had increased to equal the peak of 2007 by the second half of 2011. Property values then continued to rise until 2016 and the Brexit vote.
Yearly Price Movement
Residential Rental Property Market
It has been a rollercoaster ride for the rental market across all of London, Hackney included, since the Brexit vote.
In 2017 we saw a 7% drop in values except in one bed apartments, which saw a 3% drop, the first dip in over 10 years. During 2018 rent levels have remained static and the good news is that in the last third of the year we have seen a jump in activity levels almost back to where they were in 2015.
Whilst we have seen some landlords turn to selling due to the new tax legislation and the new licenses Hackney Council require (see below, point 4), the subdued sales market has dissuaded many landlords from selling right now; at least until after Brexit.
For more detailed information please call for a chat!
If you are a landlord, please consider:
1. There are many changes to your tax liability as a private landlord. Please see www.gov.uk and search ‘tax relief for landlords’ or consult an accountant/tax advisor.
2. Energy efficiency regulations have changed. All privately rented property will need to have a minimum rating of E (noted on your Energy Performance Certificate), or the landlord could be faced with a £4,000 fine. We are also seeing the first renewals of EPC reports since their introduction in 2008 so please ensure yours is valid as it is legally necessary to have a valid EPC before serving notice on a tenant. Please call us for any assistance on this matter.
3. Licensing for landlords – Please visit www.hackney.gov.uk/property-licensing to check the new license criteria which will be enforced as of from the 28th February 2019. Applications have been open since October 2018.
Yearly Price Movement
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