Interest rates will stay low
The bank of England’s benchmark interest rate was 0.75 percent. That would add 22 pounds to the typical $175,000 in tracking mortgages, but most homeowners could ignore more than half of their fixed-rate borrowers. The economy is weak and the market is not expected to grow further throughout the year. Although inflation has exceeded wages, mortgages are still cheap, but a burden.
Buildings will go up
In 2016-17, 217,000 new residential projects were built, up 20% year on year. But that is only a return to pre-crisis levels, well below the 300,000 target set by the government. If the number of immigrants in Brexodus continues to decline and construction activity continues to increase, the supply of housing will not be as pressing as in previous years.
The landlord will lose to the first buyer
First-time buyers should be on the rise by 2018 and offer loan repurchases. As recently as 2015, landlords used to buy and sell 120,000 homes, but the mortgage commission expects that number to fall below 80,000 by 2018. Higher taxes and tighter lending standards have slowly balanced homebuyers rather than property speculators.
Cutting stamp duty and helping to buy will continue to support developers
Philip Hammond canceled stamp duty on all property purchases by first-time buyers and the budget went into effect immediately. The move will save up to 5,000 pounds for four of the five first-time buyers. But the office of budget responsibility predicts it will raise prices by 0.3 per cent by 2018. At the same time, the purchase of the scheme helped add another 10 billion pounds until 2021, despite critics saying it had been wasted chasing the price of new buildings.
Tenants may eventually get some relief
After years of rising rents, owners found they could no longer squeeze tenants. Average rents in Britain and London rose less than 1 per cent in 2017. Wages are not expected to actually rise in 2018 due to inflationary pressures. The tenant will commend the new agency fee ban – final arrival time. A date for the ban has not yet been set, but the government insists 2018 will be a period of time.
The rich are getting taller
The 56th floor of One Nine Elms will run on the London skyline in 2019, with the first buyers (starting with 800,000 pounds) moving to 2019. But the city’s tallest residential roof will soon be occupied by Spire. It will have 67 floors and 861 suites (over 2 million pounds) and will be completed by 2020.