What does the property market have in store for us in 2013?
Brace yourself for what the property market has in store for us in 2013! How does increased accidental millionaires, micro markets and houses that earn a living sound? Does it interest you to find out what these things mean and what else is going to grip the 2013 property market? If so, all will be revealed below!
Well, I will start at the beginning of my tantalising list with accidental property millionaires. This seems strange but it is true that around 43% of properties in central London are valued at £1 million which is an increase of 8% compared to a year ago according to Marsh & Parsons London Prime Market Monitor. Property wealth is also spreading out of the areas of the Chelsea and Kensington to the southern and western zones such as Brook Green, Clapham and Balham.
The next thing we have to look forward to in 2013 is the new trend of micro markets. There are prime central hotspots in London that can expect house prices to rise rapidly during 2013 according to Savills. These areas include Beaconsfield, Sevenoaks and Guildford which will experience a rise of 1%. The long term, five year forecast predicts a growth of 21% for the inner capital city area and 19% outside of the inner London commuter zone.
The third trend that is going to continue in the property market is known as the Generation Rent. Private renting reached an all time high in 2012 and is set to continue with rents becoming more expensive with an 18% rise predicted between now and 2018. According to Finders Keepers, a search agency based in Oxfordshire, first time renters are now in their late twenties or early thirties which is a lot older than five years ago. According to London Central Portfolio Ltd, 37% of their properties are rented out by bankers and 29% go to students from around the world which pay an average of £32,805 a year for a one bedroom studio flat which is currently the ‘hardest working’ sector in the housing market.
The next trend to expect in the property market in 2013 is for London to lead the way, surprise surprise… Savills expects London’s property market to stay steady during 2013 however, they are also predicting a 3% - 4.5% rise in property sales during 2014 and a 21% rise by the end of 2017. When the economy recovers, property transactions are expected to lift by a third but they will still be 28% lower than the dizzying heights that were experienced in the past few decades.
Are you ready for the next craze that will take over the property market in 2013? Well, how would you like your house to earn a living? According to West Country Estate Agents, enquiries for houses with cottage lets have doubled. An owner of one of these properties can earn an average of £12,000 to £15,000 a year from their properties.
The final trend that is going to grip the property market during 2013 is eco homes. Yes, they have been around for a while but eco homes are changing. Homes that are environmentally friendly, cheap to run and modern are expected to be in demand in 2013. People who are looking to downsize with no extra costs as well as families moving up the property ladder are expected to purchase eco sensitive houses in 2013.
And that concludes Pali’s blog on what does the property market have in store for us in 2013! Which trend listed above do you think will be hot and which trend do you think will be a flop?(0) Comments
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