It is expected that estate agents will once again see the average price of property rise over the next twelve months
According to Stuart Law, the chief executive of buy to let company Assetz, the average valuation on property in the UK will increase by approximately seven per cent in the New Year.
London trends spreading to the rest of the country
It is likely that the changes to stamp duty and updates to annuity legislation which will come into action in early 2015 will spur increased interest in further property investment.
The solid momentum reported in London last year is likely to extend into the rest of the UK during this year with the uprooting of young professionals the main reason for the trend. This will see those
previously based in London finding places to live in regional hubs like Birmingham because they can no longer afford the high rent rates in the capital.
Law explained that despite the fact London led the way throughout most of 2014, the city is now “cooling” and other UK regions will enjoy a long-awaited catch up during 2015.
As the period of uncertainty surrounding the independence referendum is over, Scotland in particular is likely to experience a revival in property price.
Growth in areas such as this will help balance the effects of the London slowdown to offer growth in the property market overall.
Opportunities for buy to let investors
As a result, Law advises buy to let investors to find property in areas with high employment levels like wealthy suburbs or city centres. This will allow them access to a mounting market of cash-rich renters.
Law also advises property sector stakeholders to find smaller house builders who he believes will become an increasingly important supplier of new homes, especially when developing small areas of land that are considered not as attractive to larger developers.
This could be a significant step towards addressing the UK’s long-term housing shortfall problem as we head into another year which expects to witness a demand that outweighs supply.