If you’re interested in investing in a property, there’s a good chance that you already know of some of the more recent news, like the stamp duty break or the current mini boom the market is experiencing. All of this has encouraged an influx of individuals to invest in the United Kingdom, but if you’re thinking of long term opportunities, you may be unsure of what all this means for the future.
While we can’t know for sure what will happen, experts in the field estimate that things are certainly going to continue to grow – which you could take advantage of.
Property market forecasts for the future
From looking at various property market forecasts, we can see that despite the lower transaction volumes at the moment, the market is currently in a position where it can easily bounce back and continue to grow beyond what it was before. This is an exciting prospect for most investors, buyers and mortgage lenders, since it was more difficult for the market to recover after past economic issues.
An excellent example of this was the financial crash back in 2008, where house prices across the nation dropped by 20% in the space of just 16 months. It was only in 2014 that the market recovered, but it seems that the regeneration and growth will come much faster this time around.
Unlike before, we’ve been able to adapt to the circumstances fairly quickly and therefore work with what we’ve got. Where in the past it was a struggle to rebuild what had been knocked down from the crises, we have fortunately been able to find solutions that have swiftly led us closer to recovery.
Lenders are also in a better position now than in 2008 to get back to normality too, although the most progress is being seen in the rental market. It helps that the demand for properties didn’t decrease over the course of lockdown; in fact, it only grew as more individuals wanted to move, buy and sell. In the first week of April alone, the demand for rental properties rocketed by 30%. The majority of buyers and renters opted to follow up on their pre-lockdown plans once the restrictions were eased, which only increased the amount of sales and transactions that took place.
Is the market stable enough for investments?
Before investing, you’re going to want to know how risky it is. The good news is that even with the challenges that COVID-19 posed and the changes from Brexit earlier on, buying in the UK is still an excellent option and a stable opportunity for many investors. Additionally, properties have remained as one of the most stable assets in the nation, with the market staying quite strong even with the economic crash, where other fields like the stock market struggled.
This only goes to further prove that housing in the United Kingdom is an excellent choice for investors looking for stable, high-yielding assets that are likely to stay strong and profitable long-term.