Why is the UK property market still relatively strong?

When looking at the UK property market it is easy to forget that property prices are still moving higher. True, the rate of growth may have slowed but with the exception of London, the UK property market is still moving forward. What happens in 2019 is anybody’s guess at this moment in time but nobody is really predicting a property crash. So, why is the UK property market still relatively strong?

IMMIGRATION

To get to the bottom of the UK property market you need to ignore the often biased press comment and dig deep, very deep. Concerns that the UK economy will struggle because of fewer economic migrants entering the workplace is a valid point. The suggestion immigration will simply fall off the edge of a cliff after Brexit is “project fear” at its very worst. Those who really want to make the effort to come to the UK will still do so, whether from the European Union, Australia or anywhere else in the world, they will simply abide by a different immigration system. Therefore, there will be ongoing demand for property.

CHEAP FINANCE

It is fair to say that first-time buyers are still struggling to climb aboard the UK property ladder but it is also fair to say that cheap finance is still available. Even the US authorities, who recently looked to increase US base rates, have been forced to do an about turn. The Bank of England has also commented on UK base rates, suggesting they are unlikely to return to “historic levels” any time in the immediate future. Therefore, cheap finance will still be available to the mortgage market for some time to come. This will support new entrants and those looking to move further up the property ladder.