2015 was a great year for the property market in the UK, although the sheer level of growth and demand has created some issues in terms of creating disproportionate price points. Despite this and a lack of viable houses being listed for sale, 2016 promises to be an even better year for real estate in the UK and one that can drive genuine economic growth throughout the north and the south. There are multiple trends that home-owners and aspiring buyers should look out for in the year ahead, especially if they wish to retain an edge in the marketplace.
So without further ado, here are three real estate trends that you should look out for in 2016.
- Growth will return to more manageable Levels
We have already touched on how 2015 saw considerable and inflated levels of growth, and these have undoubtedly created an imbalance in the market. The next year will see the consolidation of existing growth as the market returns to normal, as prices rise at a manageable rate of 7% and supply becomes more aligned with supply in the marketplace. With abnormal trends in growth set to be consigned to the past, the property market will begin to enjoy sustainable and organic expansion.
- The Generational Shuffle will offer huge advantages to vendors
Home buyers have suffered in the face of spiralling price points, as a lack of supply has created a market stacked heavily in favour of the seller. This trend will continue to some degree in 2016, with a generational shuffle offering new opportunities to vendors and enabling them to sell their home successfully. Not only will the next 12 months see many individuals aged between 25 and 34 take their first steps onto the property market, for example, but will also see so-called generation Xers consider upgrading their home or making retirement plans.
Either way, this will create a healthier flow of property and increase demand across a wider and more diverse demographic of buyers.
- Affordable Housing will dominate the market
At the moment, the government is backing a host of new-build construction projects in a bid to narrow the gap between supply and demand in the property market. This is part of a wider focus to create more affordable housing in the UK, which will be driven primarily by single-family construction and the development of large, privately owned estates. This will come to fruition in 2016, as more affordable price points are listed on the market and first-time or family buyers are given a better chance of entering the property sector.