With 2017 done and dusted, it’s that time of year again for industry officials to pull out their crystal balls and begin gazing knowingly into the year ahead… So, what are Delph Property Group’s predictions for 2018?
London will continue to lag behind the rest of the UK
If one thing is certain, it’s that 2018 will be another year in which regional property growth outpaces London. The data already shows just how sluggish London’s price growth was throughout 2017 and the predictions are just as gloomy for the year ahead. This is not to say that the regions will not face its own challenges, as house prices across the UK continue to suffer from the indecisive trudge towards Brexit. But, continued regional investment from government, businesses and developers will most certainly fuel a level of property growth that London can only hope for.
Average House Price Index January 2018 – Source: Rightmove
The numbers of young people leaving London will only increase
One of the more interesting trends to emerge from 2017 was that the number of people snubbing the capital hit a five-year high. Driven out by spiralling living costs, young professionals are increasingly drawn to regional alternatives that offer a better quality of life and, crucially, cheaper property prices. The rise of the ‘Avocado Generation’ has been a game changer for property and the fact regional cities can offer double the space that London offers; this shift could grow exponentially. In years gone by, this was offset by the desire to embark on a fast-paced career in the capital. But, with more big-name employers pitching their tents in cities like Manchester and Liverpool than ever before, it would be surprising to see this trend reversed in 2018.
Buy to let will experience a regional renaissance
It’s no secret that buy-to-let property investors have been stung by a succession of government policies in recent years. But as news spreads that buy-to-let is still an affordable and profitable venture in cities across the UK, it’s not a stretch to suggest that 2018 will see more investors turning to previously overlooked regional markets. And why wouldn’t you? Up-and-coming locations like Leicester, are offering investors yields of up to 8.5%, signalling it’s high time investors put London firmly in the rear-view mirror.
Housing returns as a national priority
In a ‘blink and you missed it’ moment, Theresa May reinstated housing as a Cabinet priority during her January reshuffle. How? By endowing Sajid Javid with the mantle of Secretary of State for Housing, Communities and Local Government. While only time will tell if this is just a PR exercise, it’s perhaps best viewed – cautiously – as another step in the right direction for housing policy. 2017 witnessed a number of minor, yet important government interventions into the property market. Now housing’s subtle elevation to the top table might just signal that more is to come in 2018.
If you’re looking to fund a residential property scheme of 50 to 400 units in a UK regional hotspot, get in touch with Delph today: delphgroup.com/contact-us
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