The Future of Property Demand in the UK

Sheree Foy, founder of Source Harrogate, has told the Yorkshire Post her predictions for the future of property demand in the UK.

Firstly, she dismissed ideas that Brexit will have a long term effect. On the supply side, she says, not a great deal will change. Demand, however, may be affected. Growth forecasts show reductions over the next two years, and there are rumours amongst financial analysts of a 50-50 chance of recession.

Along with base rate reductions by the Bank of England to a record low of 0.25%, cheaper mortgage rates, and the prospect of further interest rate plummets, property demand may be a bigger issue.

But Foy is less interested in these matters, looking to the longer term.

So what are the big issues around property demand in coming decades?

Property Demand by Demographics

Over the next ten years, we will see a significant rise in the over 65 age group, combined with a dramatic rise in over 85s. One in five people in the UK right now will live to see their 100th birthday, according to the Department of Work and Pensions.

From this, Foy predicts a rise in property demand for bungalows, and other homes suitable for later life living. Foy labels these properties as “rare asset[s] with a guaranteed increase in demand” – and notes that those who plan ahead with their investments to meet this upcoming property demand are set to reap rewards.

Homes with smaller gardens, close to towns, with adapted kitchens and bathrooms, are all winners.

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Property Demand by Location

Over the last ten years, farming has become increasingly more automated, leading to an inward flow to towns, which are more attractive than ever.

On the other hand, public transport is becoming less available, with journey times taking longer and longer. Without a drastic overhaul of the public transport network, property demand in cities and towns could continue to rise.

Nonetheless, Foy is banking on a return to the country facilitated by technology. Better broadband connections and speeds are making home working an increasingly available option for many, whilst the predicted adoption of driverless cars in coming years will also relieve much of the strain of commuting. With this eventuality on the horizon, country living could equally be set to rise in popularity.

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Property Demand By Energy

As we move further away from dependence on huge power stations in favour of multiple source and sustainable energy sources, EPCs (Energy Performance Certificates) are set to become crucially important to the desirability of a property.

More locally generated power, from solar powers to wind turbines, are growing in use in domestic settings. Homes with adverse EPCs, Foy states, just aren’t selling like they used to.

To increase the desirability of your property, Foy recommends staying on top of energy efficiency in the home. Replace old boilers, insulate walls and roof spaces, double/triple glaze those windows, and look into home power generation options.


Planning ahead for future property demand is a key factor to take into account when investing in property. Choose your weapons wisely, and build a portfolio that will stand the test of time.


5 Ways To Find The Best Property Investment Areas

Whether you’re buying a property investment in the rental sector, or to sell on within the residential sales market, you’ll be looking to get the best return on your investment. So how do you go about ascertaining the best property investment areas to target?

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We take a look at the top five factors to consider before investing in property, and the questions you ought to be asking yourself to ensure you’re looking in the best property investment areas for your money.

  1. Local Trends

  • What are the current cost trends in the region?

  • Are housing prices here rising quicker than other regions?

  • What is the average cost within other neighbouring towns, and how does your town compare?

It’s worth starting with a broad area you’re hoping to target, and zoning in from there on the best property investment areas to focus on.

  1. Indications of Growth

  • What new infrastructure developments are being constructed in the area (schools, transport networks, shopping areas)?

  • What industrial growth is going on (businesses putting down roots, new job opportunities)?

  • What residential regeneration projects might you be able to get in on?

Spend some time in your desired area, and do plenty of research into what’s going on at ground level. Where there are concrete signs of development for the future, there is opportunity, as potential buyers (or tenants) flood to the area for work and leisure.

  1. Tax Implications

  • What is the tax charge likely to be?

  • How are property taxes likely to increase in the near future?

It’s a good idea to have a chat with a local tax assessor, and gain some trustworthy advice from a tax expert. Find out about tax structures, and any that will specifically apply to your area.

  1. Schooling

  • What are the OFSTED reports of local schools?

  • What do the GCSE and A Level results look like of catchment area secondary schools?

  • What family demographics dominate your desired area?

Any families looking to buy (or rent) a property are very driven towards areas in catchment for the best schools. In many cases, good catchment areas are reflected in the house prices in the area. Schools are a key factor that indicate the best property investment areas to focus on. Don’t underestimate the value that parents place on where their children will be educated.

  1. Outlying Regions to Cities and Towns

  • What are the transport networks like from outlying towns and villages into the main city/town?

  • Where are the job opportunities for those likely to buy in your desired area?

Whilst prices will be high, and supply low, within cities and affluent towns, some of the smaller towns and villages in the outskirts can be particularly desirable.

Rural areas where public transport is less freely available are actually more desirable for many buyers, where village schools are often well-appointed, and space and scenery make a pleasant contrast from working in the city, are very desirable. Such rural regions are very likely to see high value rises over time.

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Understanding the market will help you identify the best property investment areas to target.

These five factors to consider are perhaps the best ones to implement if you’re hoping to generate an income from investment in property. As always, it’s best to do as much research as possible, and to seek as much expert advice as you can.