UK Real Estate Trending Online For Growth
There are signs that the long awaited recovery in the housing market is taking hold. According to a May report from IBIS World, real estate sales in the UK lost 16.7 percent in 2008-2009. The industry began a recovery in 2012 and is on pace to grow about 2.3 percent over each of the next 5 years. Despite the recovery, total sales and average selling prices are well below industry highs enjoyed in 2007-2008, when lenient lending policies were in place.
During this period, interest rates have been favorable and pricing is excellent for buyers. However, tougher lending policies have hurt first-time homebuyers and persons with homes to sell. All the factors are in pace for a recovery that could further boost the nation’s struggling economy.
In the UK, the residential real estate industry is the largest sector of the real estate industry, accounting for more than 60 percent of all revenues. UK real estate agencies include all businesses that provide intermediary services in the purchasing, selling or renting of real estate on a fixed fee rate or commission. These agencies also provide a number of other activities like appraisals and property management.
Residential Real Estate Trends
Growth in London is very strong. Residential sales are expected to increase by 5 percent in 2013. The London market is saturated with foreign investors. Due to weakness throughout Europe and in the European banks, foreign investors are acquiring property at unprecedented levels. Areas outside London have not enjoyed the same stimulation but sales are on the up.
IBIS points out that growth in all areas of the country is expected through 2018-2019.
One of the new trends that has evolved through the recovery is the industry’s reliance on online marketing. Digital images allow overseas investors and relocating nationals to gain insight into possible properties. In the US, more than 80 percent of homebuyers told the National Association of Realtors that they first viewed the home they eventually purchased online.
The UK has not reached that level yet, but the trend is noticeable. More and more UK real estate agencies have taken their marketing online, a cost-effective way to get properties viewed by the public. The importance of staging, digital imaging and even filming can help gain a property needed exposure.
The power of this strategy is also reflected by another trend in the UK. Today’s homebuyers are concerned about the quality of Internet service in the homes they are purchasing. ICM Research released a report in 2012 that showed potential homebuyers were going to consider the fixed line broadband in the home they acquired. 30 percent of the 2000 respondents indicated this was a serious consideration in the buying decision.
With so many UK workers operating home-based businesses, it only make sense. E-Marketer has estimated that by the end of 213, 70 percent of all UK residences will have access to broadband connections.
Residents of urban areas are much more likely to expect and insist upon broadband. In rural areas, the demand was less intense as 25 percent of potential rural buyers thought broadband a major factor. 22 percent of urban buyers said they would pay a premium for a connected home.
As residents of the UK become more mobile, more Internet savvy, buying habits are bound to change. Serious buyers are shopping online and through their mobile devices. This has caused many agencies to upgrade their sites to mobile applications, another noticeable trend in the industry. With fewer printed newspapers selling, advertising has also gone online. If you are shopping for a home or listing a home for sale, the online presence of your broker is an important consideration.
- Five tech tools that can help you get into a new home faster (techburgh.com)
- Homebuying is in warp drive thanks to the tight market and the Internet (bizbeatblog.dallasnews.com)
- Breaking into the Real Estate industry – how to set yourself apart (buckmasterhawkey.wordpress.com)