Our Forecasts and Trends for 2018
Our top forecasts for 2018 and the property industry:
- All the financial pundits are indicating that the bear market in bonds is on the cusp of starting. The impact of this may be higher interest rates and borrowing costs going up for individuals/ corporations. The property market is inversely proportional to the interest rate cycle – having a negative effect on the property market.
- The Conservatives are proposing taxes and extra 3% stamp duty surcharge, wanting to reduce Buy to Let sector and make it flat. This may create more supply in the market place, with more people selling properties.
- HS2, the new high speed rail, will improve geographical mobility and increase connectivity. Where there are jobs house prices go up, but with increased connectivity, the house prices in London and major cities may deflate if demand reduces and people start moving out.
- Modular housing and 3D building, where manual jobs replaced by automation at a faster pace and cheaper price. According to a new McKinsey Global Institute report, the Construction industry is the least productive sector. Modular will help to decrease this, by removing poor project management in the build process and making consistent design processes. Examples of firms building from prefabricated standardized components off-site in a factory suggest that a productivity boost of five to ten times is possible (McKinsey).