The property market is constantly changing as a whole host of different factors lead to fluctuations in house and commercial property prices and demand.
On average, 2016 again saw a boom in the property sector, with regular house prices still on the increase following the previous market crash. However, the effects of Brexit are expected to continue, with experts predicting the housing market will flatline. The next few years are expected to be very quiet for property – some experts are even predicting a year of zero growth for 2017.
In the UK, the North-South divide is expected to come into practice again, with property prices in the North of England, Scotland and Wales expected to fall. Conversely, the south of England is expected to experience a small amount of growth, although nowhere near as much growth as has been experienced over recent years. Analysts expect growth in London and the East Midlands to grind to a halt – meaning that predictions for Cambridge in the year ahead are not overly optimistic.
Since the Brexit vote, many estate agents have reported a fall in the number of properties being advertised on the market. The housing market is influenced by major economic and political decisions and this is reflected by the uncertainty, lack of growth and lower transaction rate across the sector.
House Prices in Cambridge
In the last quarter of 2016, house price growth in Cambridge actually fell, with analysts largely citing Brexit as the main factor for this. Similarly, last spring’s increase in stamp duty ended up causing more people to rent than buy, creating a knock-on effect for people investing in property. Throughout the year, Cambridge’s house price growth increased by just 2.7%, which was actually the lowest growth rate across all English cities. Despite the lack of growth, the average house price in Cambridge was £420,000 at the end of last year, making it the third most expensive city in the UK.
That being said, despite the overall outlook and current property trends, there are still plenty of buyers and investors looking to make returns on property in Cambridge and the surrounding area. However, the difference is that these buyers are taking more time over their decisions due to the limitations of the property market at present. Arguably, this could be taken to mean that prospects for potential buyers and sellers are actually better than this time last year.
Commercial Property Trends
On the other hand, trends are looking very different when it comes to commercial property in Cambridge. Always a popular city for investment, Cambridge is a hotspot for commercial property thanks to its popularity among large companies and relatively limited supply of office space.
Commercial property in Cambridge is highly desirable, and this interest only looks set to continue for the foreseeable future. Unsurprisingly, one of the key players in the city’s success is the university. Cambridge is increasingly becoming one of the country’s most important centres for research, science and industry, creating further interest among big names in these sectors.
Out of town, business parks are in high demand for commercial property units, both among new businesses and existing companies looking to expand out of their current units. In the city centre, demand is even stronger and prices much higher than the national average. One of the problems faced by businesses looking to expand into the Cambridge area is simply the price and amount of competition in certain industries.
However, it’s not all doom and gloom, as the current state of the market means that there are some great properties out there on the market waiting to be snapped up. If you are looking to invest in commercial property in Cambridge, 2017 could well be the year for you.