25 Sep Investing in UK property, still a good idea?
In these times of uncertainty we are often asked questions about the property market and whether or not it is a good time to buy, sell or invest. The Brexit negotiations are causing the property market to stutter somewhat, we’ve seen transaction levels dip, and growth slowing in former ‘hotspots’ – largely due to economic factors and rising interest rates and new buy to let investor taxes and regulations.
As one of the leading estate agents in Tunbridge Wells and the surrounding areas, we have the opportunity to look at what is happening in the Capital and draw some of our forecasts from how other commuter town’s property markets react.
The UK is embroiled in a housing cycle and depending on your location, you may be at the tail end of it or it might just be getting started. The North of England seems to be powering ahead with reasonable growth while other locations such as Aberdeen (Oil Industry hub) and London are slowing.
People are unsure whether or not now is a good time to buy or sell a property. The fact of the matter is that unless you have a major relocation to another part of the country planned you are probably looking to move to a place at the same point in the cycle and so the status quo will remain. Any hit you take on your property sale will apply to the property you are looking to purchase.
Ed Mead, founder of Viewber told the Financial Times: “Most people sell because they want to buy something bigger. Say you’ve got a £1m house that’s now worth £850,000. You’re trying to buy your dream house, which might have cost you £3m three years ago, and you can probably buy it now for £2.25m. Who’s winning there?”
We use the term ‘property investment’ to refer to the home buying market – essentially the Bloggs family looking for their next home. However, investment properties are usually secondary but-to-let properties bought by independent landlords or investment companies as a source of income.
Times of such uncertainty bring with it many opportunities for the savvy investor who may be in a position to pick up a property bargain in areas which are flagging in terms of growth.
Get in touch
It’s easy to get confused when looking at the state of the economy to see whether or not it’s a good idea to make a property move. So, if you would like to speak with a member of our team to talk through your options, give us a call on 01892 530 109 or email us, you can also follow us on Facebook, Twitter and LinkedIn.
photo credit: By Imran’s Photography