If you’re interested in buy to let, the fact that housing prices in the United Kingdoms are falling at the fastest rate since 2009 should present a valuable opportunity to you. Purchasing prices are closer to asking price than ever, which means that you can buy properties cheaply, and when prices rise again, you will receive larger returns on your investment. With many of the causes of this depreciation soon to expire, there is a chance prices will rise again soonerrather than later.
Housing Is In A Slump And Is Expected To Spring Back From It
Right now the available property on the market is growing; one statistic reports that in July the number of listings rose by 8.6%, while the number of buyers did not grow to match. As more properties become available, prices are naturally going to decline, making it easier to purchase housing and prepare the available property for resale or renting.
Furthermore, while we don’t know where property values will bottom out, the average property values have been much higher than current market prices. And housing prices haven’t dropped without reason; the UK’s separation from the EU, recent price hikes in construction materials, and other causes have made citizens looking to buy or rent new homes wary. People’s tensions about these causes are expected to peter out, possibly as soon as sometime in 2019.
A Good Time For Property Owners, Not Tenants
Changes in immigration policies have limited the number of renters from overseas. The fallout from Brexit has also meant that fewer seasonal workers from nearby countries such as France are coming to England for jobs and renting properties. On the other hand, a recent hike in wages in the construction sector, and an increase in construction materials mean that fewer people want to buy new homes, and are instead looking for rentable spaces.
All of this means that while the number of people looking for new homes or apartments is down, the number of investors buying up houses in anticipation of the upswing is growing. Many have even begun using analysis software and apps developed for their phones to keep track of the market in real time. All of this is to say that many investors think it’s not a matter of if buying up property now will pay off, but when it will pay off. And all of these possibilities are available to you.
There Are Differences Between Rural And Urban Property
One thing to note is that not all properties will be equal, though. Properties in London are decreasing faster than prices in northern England for example, and that fall isn’t decreasing at the same rate as elsewhere. So properties are selling much faster in Liverpool or Manchester than their southern counterparts. While the upswing will affect properties all over the UK, properties in especially thick urban and business areas may be a bit riskier.
Housing in every sector of the UK is cheaper to buy and let than it has been in roughly a decade. Instead of a buyer’s market, we’re currently experiencing an investor’s market, where many investors are eagerly purchasing property with the intention of turning it for a profit once this downswing ends. Once the immigration limbo from Brexit ends and caution about the increased tax rates goes away, property owners are expected to see their investments grow considerably.