Looking back: The property market in 2016
With 2017 just around the corner, we take a brief look at the events that have affected the housing market and shaped one of the most eventful years in recent history.
For many, 2016 is a year they would rather forget. With an inconceivable number of well-loved celebrities passing on, the UK voting to leave the EU and an outspoken reality show star becoming President of the United States, you would be forgiven for believing that the last 12 months are simply part of a practical joke that got a little out of hand.
The property market hasn’t had it easy, either, with unexpected events and bad decisions affecting consumer confidence – while industry pundits have found themselves flummoxed while attempting to predict the future.
The greatest influence behind the market this year was undoubtedly the Brexit referendum. With so many foreign investors, the choice to leave the EU is one that will surely affect the industry for years to come. Although sales seemed resilient following the vote, it’s important to realise that no action has yet been taken – and the outcomes regarding the single market, free movement and potential financial penalties are still unresolved, making 2017 look like another year of ensured uncertainty.
Another issue that affected the housing market was the increase of stamp duty on second homes and buy-to-let properties by George Osborne in April. Originally meant to dissuade wealthy buyers from snapping up properties that would affordable to first-time buyers and those on lower incomes, it simply forced landlords to pass on these extra costs to tenants, making it even harder for renters to save up for their own deposit.
A continuing problem has also been the lack of affordable new-build homes. With construction spending at a shocking low, many examples of mismanagement of funds and badly thought out geographical planning has left the UK with a huge shortage of home for a growing population.
It’s also important to mention the orange in the room. Even though his inauguration isn’t until January 20th, the Trump effect is in full swing – and despite running on a platform of ‘draining the swamp’ from Congress, his cabinet so far is an invariable who’s who of wealthy businessmen, who will undoubtedly have their own agenda. How Trump’s foreign policies will play out is as yet unknown, but property markets around the world are bracing themselves to be impacted by the decisions of the soon-to-be President.
In summary, 2016 has been a staggering year in terms of the unexpected occurring. With continually rising rents and an erratic period for house sales, most property selling experts do not expect to see stability for years to come. While many have held back putting their homes on the market for fear of losing profits, there have been those who have had to bite the bullet and list their homes in hope of a fast sale.
Thankfully, for those who needed to sell, property buying companies have been available to provide an alternative route without needing to use estate agents, enjoying competitive prices and an efficient sale.
Are you worried about struggling to sell your home in 2017? Why not ask National Homebuyers for advice, as we guarantee to buy any home. Call 08000 443 911 or request a call back to find out how much you could get for your property.