As we start to enter 2017 many people are wondering what will happen to house prices during 2017. With Brexit’s effect on the UK economy still making waves and forecasts of a possible British export boom in 2017 there is a good chance we will see house prices surge during this year.
Daniel Morgan, Chief Executive from Property Cash Buyers, said that there had been very positive signs as they started 2017. Their enquiries from both buyers and sellers has increased 150% year on year with the numbers expecting to grow over the next few months.
Mr Morgan also said that he expected to see a drop in the average waiting times to sell a piece of property stock within the UK. In 2016 the average waiting time for a sale to complete was 13 weeks and the online estate agency expect to see this reduce to 11 weeks after entering the first quarter of 2017.
However, it is also noted that there are dangers and possible bumps in the road ahead for the UK housing market. There is the possibility that the UK’s Brexit negotiations could hamper property sales in prime locations such as London due to more caution from the foreign investor sector. That being said with a current 20% drop in the value in the pound against other major currencies it could also be argued this is a great time to look at buying in the UK.
Another potential headwind in UK house prices during 2017 might come in the shape of government policy changes aimed at curbing over speculation in the property sector by investors. After the effects of 2008’s over speculation on new build property the government have started to tighten lending criteria and recently changed the way investment property is taxed.
Overall with the recent change in the economic forecasts and a big uptick in consumer enquires via websites such as property cash buyers we think a rise in house prices is a real possibility as we enter the new year.
When making the choice of a lawyer, you must meet him or her personally. This will help you in making the right thing. Another important thing that you must stress on is the speciality of the solicitor that you choose. Solicitors specialise in different field, and workplace.
When making the choice of an attorney, you need to ensure that the lawyer specialises in the required field.
Go for Recommendations that come from your Estate Broker
Most of the times estate brokers recommend the property lawyers.
When you are into buying or selling properties, it is important that you get hold of the right property solicitors. This is because making the choice of the wrong one might have you losing thousands of pounds. Another reason why you should choose right property solicitors in London is for the success of the entire selling or buying procedure. If you make the wrong choice, the whole deal will go off your hands. Some important tips can help you choose the best property solicitors and they are as follows:
Get Quotes from Different Solicitors
The services of qualified property attorneys are needed when dealing with complicated transactions. In times of disputes in deals, taking the services of a professional and experienced lawyer would be of real help. This is because property solicitors have the right experience in dealing with disputes in regards to property. There is one thing that always worries people when it comes to choosing solicitors and that is hiring the services of a solicitor might cost lots of money.
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If this is the case with you, you must not worry at all. You can actually save a good amount of money by getting free quotes from different solicitors. You can further compare the prices and then make your choice. You can go for a solicitor who charges a reasonable fee and is professional at the same time.
The brokers do so in return for good commissions. This way you will be paying quite a good amount of money. The problem here is that the estate agents recommend those property solicitors who pay them good commissions. They do not make recommendations on the basis of services. Therefore, it is important for you to ensure that your estate broker is recommending the right solicitor for you.
Buying a property has been some of the ways in making a move for investment. Real estate investment offers lower risk, less volatile and generally preserves its value. It also has the potential for steady income generation like leasing an office space in a commercial building, rented out a condo unit or flat, an agricultural land with high yielding crops and more. But before engulfing yourself on making plans on what will be the outcome of the property you’ll buy, you must first consider the kind of loan to avail that will offer you great opportunities. Many homeowners nowadays face the dilemma of making the decision between a variety of loan rate. While this depends on your personal situation, you need to carefully consider the benefits and risks of each rate type.
Variable rate mortgages
Based on the name itself, it is changeable that can either fluctuate up or down depending of the economic factors. This kind usually come with an annual fee, but in return you get discounted interest rates and waivers on some upfront fees.
Fixed rate mortgages
The rate is fix for a set length of period of time which usually ranges from one to ten years. Your rates will not go up, meaning your repayment stay at the same level. This allows you to accurately create a budget plan and ensure that your cash flow won’t have any unforeseen detrimental effect if rates are raised. This kind of loan does have hefty break costs, so ensure that you won’t have to exit your loan early. This option is good for those who think that interest rates will rise in the near future. In an economic climate of low interest rates, opting for a fixed interest rate could help you pay off your loan faster. By making the same periodic repayments, you’ll generally repay the principal down quicker than opting for a variable rate loan.
Split rate mortgages
These loans basically cut your loan into portions and then apply a combination of fixed and variable rates to different portions depending on your choice. You might be able to split the loan into more than two portions and have some at variable rates, and some at fixed rates for different set periods. Split rates can help you see a bit of the benefits and risks of both interest rate types.
Interest only – puts part of each settlement towards the outstanding loan amount (the principal) and part towards the interest due on your loan. It pays only the interest due, thus your repayments are lower but on the flip side, your principal will never get smaller making interest-only repayments, as none of your repayments are actually advancing towards the principal.
The housing market of the United Kingdom has witnessed an upsurge in the year 2016 mainly because of the increase in the stamp duty surcharges. The average price of houses in the UK has grown by 5.3 % during the first quarter of 2016 as per Nationwide. This upsurge in the prices was the highest in the Outer Metropolitan Region across London. Here the prices of houses have increased by 11.9%. The price rise is by 11.2% in London, 8% in Outer South East, 5.4% in East Anglia and 5.5% in the South West. In North West, the price hike is 0.2%, and that in Scotland and the North is 0.5% and -1.4% respectively.
Robert Gardner, Chief Economist from Nationwide, said that there had been a good pickup in the housing market of the UK in the recent months. House mortgage and housing transaction approvals have also risen strongly. This is all due to the changes in stamp duty on the second homes bought by property investors. In this scenario, buyers have come up with more purchases for avoiding additional tax liabilities. However, he further said that this fast-paced growth in the prices of UK houses might get moderate once the changes in stamp duty come into effect from the month of April.
However, it is to be noted that there are great dangers ahead for the UK property market pertaining to the increase in stamp duty. 3% increase in stamp duty applies to the Buy-to-Let purchases. This duty has been levied on top of the stamp duty rates that are already very high. This means that the landlords in the UK considering spending around £1,000,000 for normal-sized houses for converting them into five flats will now have to pay a stamp duty of 7.4% of the purchase price or £73,750. This will be in addition to the other varieties of transaction costs.
The anti-money laundering steps will further hit the property market of London. These steps are to be taken against international property owners. The steps are quite worrying for the property market of London as a huge part of London property owners would be under close scrutiny. They would be identified for the dirty money that they have been using in the London real estate market.
It is that time of the year when we all should be finished with having a look at the year that was. It is the time when we should all look forward to the coming year so that the accurate predictions can be made. The year 2016 was an entirely different type of year for the ones who wanted to make huge investments. This actually means that 2017 is an unpredictable year. You will not be able to forecast things that would actually be happening this year. There are some certainties of the gone year that might have an impact on investments in property in the United Kingdom. In 2017, supply will be a constant issue in UK housing systems.
The all new Home Building Fund that has been put into place by the Homes and Community Agency in the UK will make way for government money being invested into building houses throughout the nation. The planning laws would be relaxed and the UK government also comes up with the promise of freeing up public space for significant developments. However, this change would not occur overnight. Effects of such changes might not be felt this year but in 2018. This year, property investors and landlords in the UK would still be found reeling from the influence of the stamp duty of 2016. Specialists are of the view that the stamp duty hike was one of the key factors in the complete slowdown of property transactions in the UK during the final quarter of 2016.
2017 would be a good year for the housing market in the UK. This will be the result of the complete modification of the housing regime brought about by the UK government. There are predictions that the slowdown in the economic growth of the United Kingdom will make way for property transaction and mortgage lending volumes dropping. There are two certainties of the UK real estate market. One is that the hunger for yield in the property investors will continue to be there. Another certainty is that there is a very little reason for doubting the property position of the UK. The UK real estate market will continue to be resilient and durable and will have extensive options to offer to the ones interested. Online investments in UK properties are likely to grow in 2017. All in all, it can be said that the property market of UK will be on an upsurge this year.