Real Estate Trends in the UK: Keeping Up with the Markets

The UK real estate market has been experiencing some notable twists and turns in the recent past. Factors such as the coronavirus and inflation have impacted the market in various ways, including house prices, mortgage rates, and demand levels. Moreover, buyers’ preferences are changing, causing changes in the property designs. Here is an overview of four notable real estate trends in the UK.

Falling House Prices

Falling house prices are the most notable trend in the UK’s real estate market. Halifax reports that house prices fell by about 1% over the past 12 months to September 2023. A 1% decline may seem dismal, and Halifax suggests that prices have mostly held up because of low house supply rather than high buyer demand. However, it is also worth noting that house prices declined by about 3% from last summer’s peak of £293,000.

However, the changes in house prices across different UK locations are a mixed picture. For example, prices decreased by 0.5% and 2.7% in England and Wales, respectively, but increased by 2.5% in Scotland.

Notably, real estate agency Savills predicts that house prices will keep falling going into 2024. The overall consensus is that prices will fall by 2% to 4% based on expectations that the Bank of England will reduce the Bank Rate.

Currently, the base rate stands at 5.25%, making mortgages unaffordable and thus reducing demand. However, Savills projects that it will fall to 4.75% by the end of 2024 and 1.75% by 2027. Interestingly, house prices are expected to start rising in 2025 as the base rate falls, making mortgages affordable and thus increasing demand.

A Focus on Amenities in Commercial Real Estate

The coronavirus caused many changes to the office-based and remote working models, and the evolution is still ongoing. Interestingly, integrating amenities into the workspace is the evolution’s main theme. It started with simple amenities such as lounges, breakout spaces, and collaboration spaces. However, tenants’ and employees’ needs are expanding, necessitating more complex amenities.

Some of the most popular amenities for workplaces include gyms, cafes, and childcare, and developers are developing creative ways of integrating them into and around buildings. Interestingly, this is also driving the need for more versatile building management solutions beyond front-of-house reception, such as onsite teams.

Interestingly, the increasing popularity of campuses across the UK highlights the evolving workspace. This is understandable, considering that campuses feature stylish workspaces surrounded by amenities such as shops, restaurants, transportation hubs, and residential houses. Notably, the British Land’s campuses are a good example of this trend.

Sustainability is the Way to Go

The world is going green, and homeowners in the UK are playing their part. To this end, many homes and commercial buildings feature multiple sustainability solutions, such as renewable energy and insulation. For example, more people are installing solar panels to generate clean and free energy from the sun. On a related note, people are also upgrading to energy-efficient home appliances, reducing energy consumption. Additionally, reinforced insulation is helping reduce energy wastage.

Sustainability is also a growing consideration for developers and contractors. To this end, they are applying sustainability solutions such as using reclaimed and recycled building materials. Moreover, location has always been important, and more developers are avoiding locations that can negatively compromise the surrounding natural environment.

Smart Technology Integration

Smart homes are the future, and it is quickly materializing. Interestingly, homeowners in the UK are integrating various smart technologies into their homes, making them more comfortable and convenient.

Notably, smart speakers are one of the most popular and convenient smart home accessories. They come with virtual assistant programs such as Alexa that can respond to your commands and questions. For example, you can ask them about the time, the latest news, traffic updates, cooking recipes, and virtually everything else you can find on the internet.

Additionally, more people are integrating smart plugs into their power outlets. They are convenient because you can control them remotely, enabling you to turn electric appliances on and off via your smartphone or PC.

Stay Updated

The UK real estate market is dynamic and always changing. Keeping up with the changes is helpful for homeowners and essential for real estate investors. Currently, rising house prices, sustainability, smart technology, and integration of amenities are the main trends in the market.