UK Housing Shortage and Global Trends

There has been a change in house supply and demand since 2018, and there has been a shortage in the supply of houses (as per RICS reports). The report suggests the average stock levels remained near a record low in the quarter, and both sales and purchases of homes were nearly muted in the market. 

Global buyers are attracted to such investment due to opportunities for resale in a short time. In addition, they seek affordable bargains that can be sold when the global markets are in the recovery phase when the expenses grow. 

International real estate buyers opt for low-price assets that they can exit in one to two years or those that can give a steady rental income for 5 to 15 years. 

Opportunities In European Markets 

Since 2008, prices have not risen in certain European markets, like Greece, where the economy is in the recovery phase. However, trading Economics forecasts property rates will grow by 24 per cent between 2017 to 2020 in Greece. 

Spain's market is expected to range between 4 to 8 per cent in 2018. 

Most dollar-dominated assets declined by 60 per cent in the last decade, although costs in such currency rose 15 per cent in 2017. But investment in the dollar is still considered risky. 

Turkey's property market is still expanding with the support of the government. As a result, the domestic demand is high, and the country offers citizenship for a property purchase of a minimum of $1 million. As a result, many Russian buyers are exploring Turkey deals. 

German residential property prices are very high and continue to rise steadily (expected to rise by 5 per cent in 2018). Nevertheless, the prices are quite elevated, and analysts believe the market is poised to crash. 

London has always been a haven for property buyers, but the prices dropped by 1.6 per cent in London – as per the Nationwide Building Society reports. Earlier, people had concerns about Brexit, but London and the South of England attracted investment due to new employment opportunities.

Post-Brexit overseas acquisitions in UK property increased due to currency weaknesses. The investors are approaching markets for properties in the North of England and the Midlands, where they assume they are getting value for money. 

The RICS reports (May 2018) suggest the property prices were stable, and at least six out of twelve regions in the UK reported price rises, which included Scotland, the North West and Northern Ireland. However, at the same time, stagnation can be seen in some areas due to a lack of choices. 

In the coming twelve months, rents are expected to grow due to raised taxes and stricter lending rules. In addition, excessive stamp duty is creating problems in pricing in all regions, and people are not selling and holding properties to help their children. 

Some buyers are still waiting for the price drop. However, positive reports in the property market were registered in the last month where surveyors conveyed a higher number of sellers listed in May, which indicates buyers are seeking and getting an unbeatable match for their money. On the other hand, some buyers are waiting for the political and economic conditions to settle. 

Some of the latest updates in UK property investment are available at Hamilton International Estates (www.hamiltoninternationalestates.com).