Published: 04/03/2020There have probably never been more factors at play in the UK property market than there are right now. The national market is making steady progress as it moves through the middle of its current cycle. While the solid Conservative majority at the last election has created some much needed forward-visibility, the question now is 'what happens to stamp duty?'.
Now that Brexit negotiations are getting properly underway, it will be interesting to see if there is any direct effect it has on the market. Since the original vote, interest rates were dropped to 0.25 per cent to support the economy. This has resulted in property prices rising nationally by 7.2 per cent - and we expect them to grow by a further 6.6 per cent over the next 12 months.
So why are we so bullish about the market in Leeds? Well the data shows us that in the second half of 2019, sales levels were 0.8 per cent lower than the first half, which is very impressive when we account for the level of uncertainty which haunted the market. Based on market trends, we expect the price of the average home here to reach £334,500 by the end of 2021.
Projecting future price trends is never straightforward. The construction of new homes impacts on this heavily; residential developments will often increase the value of other properties in the area due to the way valuers use 'comparables'. Other important aspects they consider when determining the future value of property are upgrades to travel networks and new businesses opening in the area.
Rising property prices mean some people will decide against hopping on the property ladder, instead choosing to rent. Rents have also seen increases, but usually at slower rates than property prices. Landlords tend to focus on the yields when it comes to renting a property: the current gross yield in the local area is 5.9 per cent.
The future looks bright for the local property market; now is the time to think about getting on it if you're not already, especially while interest rates remain so low. If you would like to sell your property, pop into our office for a friendly chat with one of our local experts. We’d love to help. Alternatively, find us on social media.
To read the full newsletter, please click here