Certain changes are expected to hit the UK property market in 2018.
A 0.25 % increase is interest rates will tentatively occur in spring, which will increase the Bank of England’s base rate to 0.75%. This will increase a tracker mortgage of £175,000 by £22.
This raise will not affect all homeowners, given the fact that over half of all borrowers are on fixed rates.
The number of new homes being produced has increased, with 217,000 properties made available in 2016-17, which represents a 20% increase from the previous year. Although this accomplishment restores the total to levels seen prior to the financial crash, it is still lower than the government-issued target of 300,000.
A combination of reduced migration and increase in construction activity means that the housing supply will face less pressure than earlier.
The property market in 2018 will likely see more first-time buyers appear, along with a decrease in buy-to-let lending. In 2015 landlords acquired approximately 120,000 homes using buy-to-let financing. The Council of Mortgage Lenders anticipates that this number be under 80,000 in 2018. Higher taxes and stricter lending criteria are favouring the homebuyer instead of property speculators.