The New Year presents a whole range of new challenges for the UK property market in 2014, with hopes the improving climate seen in 2013 continues over the coming 12 months.
Government schemes such as funding for lending and Help to Buy have stimulated the housing market and helped to increase the stock available, while first time buyers are finding it easier to get on the first rung of the property ladder.
The positivity for next year is overflowing, with a number of estate agents and property agents predicting a boom in activity and returns for property next year.
According to the Royal Institution of Chartered Surveyors (RICS), expectations for future house price growth now stand at a fourteen-year high.
In the latest report from the organisation, almost 60 per cent more chartered surveyors throughout the UK said they predict prices to rise in the next year rather than fall back to previous levels.
Simon Rubinsohn, RICS Chief Economist, said it’s “no secret” that the housing market is experiencing a recovery and prices are starting to increase throughout the country.
With the Bank of England set to withdraw the funding for lending scheme, the expert has expressed a worry that it could mean that more people are unable to purchase a home.
As a result of this, he expects more people to return to the rental market, which could see landlords pushing up the price of rents.
This would be extremely beneficial for landlords, so purchasing a house early in the year before prices increase substantially could see property owners making bigger returns on their investment when monthly rates rise.
Some of the leading property experts and agents, such as Savills, Hamptons International, Chesterton Humberts and Knight Frank, have predicted that house prices will increase by as much as six or ten per cent, depending on the area.
When it comes to commercial developments, there is also a wealth of potential and profits in the market during 2014.
According to Ignis Asset Management, 2014 could see an 11.5 per cent total return for UK commercial property, far exceeding previous consensus forecasts.
The November IPF Consensus Forecast predicted that total returns for next year will be 9.3 per cent, which is the highest figure recorded since the 18.9 per cent seen in 2006.
Ignis’s forecast is two percentage points stronger than this estimation and the experts predict that office developments will be the highest performing sector, securing returns of 13.8 per cent.
The positivity expressed by the firm suggests that office-based properties in the UK could be a worthwhile investment.
With London one of the hottest-areas for demand and commanding high rental-rates due to minimal supply, more and more businesses are looking outside of the capital for areas to use as their headquarters.
This means that it’s not just London that will be profitable for landlords, but other regional areas will provide a number of benefits too.
Overall, the outlook for UK property market in 2014 looks exceptionally bright, so investors should make the move to put their money in bricks and mortar and other commercial units as soon as possible to truly reap the rewards the New Year will bring.