As 2016 – a somewhat unpredictable and tumultuous year – draws to a close, we round up some of our clients’ opinions for next year’s property market, and hope that the UK has a more settled, happy and “predictable” 2017!
Camilla Dell, Managing Partner at Black Brick, comments: “As the new tax changes start to take hold for buy-to-let landlords in April 2017, we may start to see some sell their properties, but with a low interest rate set to prevail, any wide-scale sell-off will likely be avoided. In terms of hotspot London locations to watch out for, we recommend White City, which is home to the former BBC Television Centre development. Tottenham is also increasingly popular at the moment as first-time buyers and investors seek value. The area is also very well connected, being on the Victoria line and with a station on Crossrail 2 planned for Tottenham Hale.
Jo Eccles, Managing Director of Sourcing Property, comments: “We expect to see a lot of interest in Ealing and Northfields from professional buyers and also families upsizing. Clerkenwell is also high on our list as a firm favourite for buy-to-let landlords, as yields are approximately 3.6% gross which is a great return relative to other areas of London. The upcoming Crossrail links will add to the area’s appeal, while West Kilburn is another hot spot and we believe the price gap between Maida Vale to the South, and Queens Park to the North, will continue to close. Overall, we think 2017 will be the year of the ‘peripheral neighbourhood’ and the search for ‘value for money’. We expect the more established and expensive areas to lose out to nearby up-and-coming neighbourhoods.”
Richard Barber, director at JLL, says: “In the final quarter of 2016, we saw more high-value sales and renewed confidence from buyers. It’s likely some of the activity can be attributed to the weaker pound against the dollar and we have seen funds seeking safe-haven from both Turkey and Thailand. Domestic purchasers, however, seem to have accepted higher rates of SDLT and are taking advantage of vendors’ eagerness to negotiate prior to Christmas. JLL’s prediction of 0% growth within PCL in 2017 is mirrored by the Office for Budget Responsibility’s cautious prediction of reduced growth in the face of Brexit negotiations being initiated in spring 2017. The market fundamentals in Chelsea, Kensington, Belgravia and Knightsbridge are strong, and while demand from buyers is more discretionary than needs-based, we should experience a steadier market going into 2017.”
Richie Tramontana of Red Property Partnership, says: “Overall, I am positive about next year. Property in the UK is a safe haven, and the weak pound will continue to attract money from overseas. However, it’s been well-documented that the market is pretty much dead above £1.5 million; I think this part of the market will continue to move very slowly through next year. In the lettings market, I believe we could see 3-5% rental growth next year as demand continues to be very strong in London and the South East. Marketed prices have dropped a little, but landlords are being more realistic. Tenants are pushing back on prices and renewals, which were so strong last year, have been relatively flat, with tenants realising landlords don’t want to risk void periods, especially with so much competition and choice in the market for tenants at present.”