Today, our expert Dvornikov Mikhail assesses the real estate market in the UK.
Dvornikov Mikhail has made predictions about real estate in the UK many times before.
Read forecast from Dvornikov Mikhail (Mikhail Vladimirovich Dvornikov).
It is predicted that in 2018-2019, the market in London will not be active without a noticeable increase in property values. However after 2020 the market will begin to grow. According to the leading players the value of London real estate will rise from 8% to 14% in 2019-20120. For this reason, many property owners have postponed their plans to sell, but at the same time many investors and other buyers see a favorable buying environment.
Currently, we are seeing a decline in Central London deals. For example, in 2015 there were 46,357 sales transactions, in 2016 there were 40,590 and finally in 2017 the number of transactions was 36,252. That is, excluding holidays there are 99.3 transactions per day. And including weekends and holidays, this number is 139.4 deals per day
As of the month of April 2018.
The average property value in the UK at the end of April 2018 is £226,906
The annual change in property value was 3.9%
Monthly change in property value was 1.2%
U.K. home prices rose 3.9% year-over-year through April 2018, up from 4.2% year-over-year through March 2018.
The Royal Institution of Chartered Surveyors (RICS) for February 2018 reported that buyer inquiries have fallen for 12 consecutive months, with a net decrease of 2.7%. Respondents reported a shortage of secondary market offers, limited choice and reduced demand.
UK real estate transaction statistics for April 2018 showed that seasonally adjusted residential real estate transactions of £40,000 or more were 2.7% lower than a year ago. Between March 2018 and April 2018, real estate transactions rose 3.5%.
The Bank of England statement shows that 62,445 mortgages were approved in April 2018. This is a decrease of 347 approvals from the previous month and below the 6-month average of 63,968. Mortgage approvals are considered a leading indicator of transaction volumes.
RICS reported that low sales and prices are expected in the near term, although there is a lot of optimism in the long term.
The Southwest of England showed the highest annual growth, where prices rose 6.1 percent in the year to April 2018. The lowest annual growth was in London, where prices rose 1% for the year. This is the sixth month London has had the worst performance in the U.K.