The TwentyCi report shows that the average asking price of homes in the market stands at £429,000. These prices represent a £7,000 rise compared to 2022. According to TwentyCi, the asking price reflects the available stock on the market.
However, research from Shawbrook shows that many buy-to-let investors see city centre apartments as one of the more lucrative investment opportunities rather than buying a house to rent out, following an influx of workers heading back to the office after spending so much time working hybrid or remote.
Luckily, buy-to-let investors can buy these types of sought-after properties for a fraction of the average UK asking price, particularly if they look at cities outside London. For instance, one of the up-and-coming areas in the UK is Liverpool. This North West city has a strong economy that attracts potential tenants to the city centre looking for accommodation close to job prospects. However, according to the HM Land Registry UK House Price Index, the average property investment price is just over £177,000.
Speaking about UK property prices, TwentyCi chief executive Colin Bradshaw commented:
“Many sellers have been overly optimistic about pricing, and it seems the tide is finally changing. Mortgage affordability and increased supply are forcing a shift in properties with overinflated pricing.
“The housing market is holding up rather well despite everything being thrown at it. I am not saying all is rosy in the garden, but rather, given the circumstances, 2023 could have been a whole lot worse.
“There is still a lot of uncertainty both in the housing market and the economy generally and yet there are some good signs that the market is both robust and, moreover, will stay that way in 2024.”
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