Yorkshire Property Market News: What Does 2019 Hold for Home Buyers?
While discussions continue, Brexit is still unresolved, and the fate of the Yorkshire property market in the current political climate has been a question on the minds of many. Unfortunately, it’s likely to remain so over the next year. While Yorkshire and other northern and western regions are still showing positive population and tourism growth, housing supply is teetering over the edge. What does 2019 look like for prospective Yorkshire home buyers?
The Royal Institution of Chartered Surveyors (RICS) reports that the Yorkshire housing market is still feeling the effects of the Brexit uncertainty. Buyer enquiry, sales, and supply all declined in February of 2019. Roughly 76% of potential buyers indicate that their biggest deterrent is Brexit, with a lack of stock coming in at a close second.
Political uncertainty due to the Brexit situation is holding back both buyers and sellers. Sellers are waiting in the hopes of getting a higher price for their homes once Brexit is resolved. Buyers are reluctant to purchase because of concerns that prices will drop if no deal is reached. However, Brexit is not the only cause for concern.
Taxes, Stamp Duty And Renters
The current state of the Yorkshire housing market isn’t due entirely to Brexit. The market has been uncertain dating as far back as the crash of 2008. New taxes and an increase in the stamp duty have been significant contributors to the slowdown. There’s also the issue of supply. New homes just aren’t being built as quickly as before.
Not only are taxes and the stamp duty deterring buyers, particularly foreign ones, but economic conditions also play a major role. Many people simply don’t have the personal finances to afford to buy a home. Renting has become more common, and not just for young people. More families are renting now than ever before.
Buyer demand in Yorkshire fell for the third month in a row in February. Approximately 31% of Realtors and sellers reported a drop in the number of new buyer enquiries. The number of properties coming onto the market has also decreased for the fourth consecutive month. With over 216,000 homes empty across the country, care must be taken to prevent empty properties falling into disrepair, further adding to the housing crisis.
So, with stock levels so low, why does Yorkshire see an increasing number of vacant homes? With people living on the streets, it would seem the availability of potential homes should be taken into consideration. Although London has the highest rate of homelessness, the problem is also growing in Yorkshire.
Light At The End Of The Tunnel
There are options available that can help ease the strain of buying a home. Shared ownership allows buyers to purchase a share of their home and make small monthly payments to rent the remainder. Additional shares can be purchased as finances improve.
Simon Rubinsohn of RICS stated that “it could prove to be a challenging spring for the housing market and the wider economy.” However, many economists are optimistic that the market will remain active. A resolution to Brexit coupled with buyers who are ready to make purchases could produce a bounce back in 2019.