Tal Orly, international reality law expert, has published his positive predictions about the UK property market.
Writing on the Director website in February 2018, Tal Orly said that there are several factors that affect the property market, such as Brexit, interest rates, currency rates, property taxes and general economic growth. London is a leading global financial hub, and this should not be affected by Brexit. Orly forecasts that property prices in London will hold firm. An example of faith in London is Deutsche Bank who, in 2017, signed a new lease for its London headquarters.
London is also a centre for technology companies. The high-profile technology companies Snapchat, Facebook and Apple have signed property leases in the capital.
The development of Crossrail, Thameslink and HS2 should boost demand for commercial property outside of London. The Northern Powerhouse project will fuel property demand in the North.
Interest rate rises are expected in 2018 but they should be modest. They may deter people from applying for housing mortgages but should not put off businesses and investors applying for commercial mortgages.
The increase in stamp duty and taxes for buy to let landlords could make some buy to let properties unprofitable. Orly advises landlords to investigate restructuring their business, perhaps forming corporate vehicles to save stamp duty and taxes. There could mean less individual landlords with more property owned by limited companies.
Ted Orly concluded that, despite the challenges of 2018, there will be opportunities for property investors and 2018 could be an exciting year.