UK housing market experts predict house prices will rise in 2018. Preliminary estimates suggest a one percent rise in total cost will ensue due to a lack of prospective home buyers on the market. The one percent increase would be lower than the last year’s 1.2 percent elevation in overall cost.
2018 Raise In House Prices
While the one percent movement comes at a slower pace than 2017’s climb, certain demographics will still be hit hard in the coming year. First-time homebuyers may suffer more than most with an expected three percent rise in average prices. Second-stepper homes are expected to land at a two percent increase as well. Of course, all of this data depends on the outcome of the Brexit negotiations. While it would be a surprise, some optimism remains for the struggling market after final terms are hammered out.
The upper class appears to be the only demographic that will benefit in the coming year. Expensive property prices are forecasted to fall by at least two percent in 2018. With the prices of luxury homes dropping, will more upper-class adults look to invest in the market or hold on to their properties assuming prices will increase in the near future? The good news for UK citizens overall is the one percent hike would represent the smallest increase in seven years.
Will Stamp Duty Help?
Back at the end of November, Phillip Hammond announced a drastic cut to the Stamp Duty tax in the hopes of luring first-time homebuyers. The tax cut would help buyers save money on any properties listed below £300,000. While government’s plan certainly looks enticing on the surface, experts dug deeper and found that the cut will only result in about 3,500 new homebuyers – a smaller figure than Hammond and company had predicted. Will 2018 be the year the housing market bounces back or continues its downward spiral?