Is Now a Good Time to Invest in the UK Property Market?
The last few years have certainly been a turbulent period for the UK property investment market. From Brexit negotiations halting peoples faith in the market, to the coronavirus outbreak changing how we live, work and invest, there’s been a lot for investors to adapt to. In the midst of the uncertainty that currently surrounds both the property market and the economy as a whole, many investors are currently asking the question ‘should I invest in property right now or wait?’.
Contrary to common belief, now is actually one of the best times to invest in UK property. If you’re a frequent or first-time buyer who’s feeling cautious about whether or not you should invest during this time, make sure you read this guide. We look at the resilience of the property market, examine opportunities available to savvy investors right now, and give an informed answer to the question – is now a good time to invest in the UK property market?
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Investment During Uncertain Times
In past times of economic struggle, the property market has inevitably been impacted. However, it’s important to also pay attention to the ways that the market recovered following these events. To put things into perspective, let’s look at two of the biggest obstacles the property market has seen over the last twenty years.
The Great Recession
The Great Global Recession of 2007 – 2009 had perhaps the most profound impact on the property market to date. According to data from the Land Registry Index, the average price of property in the UK dropped by 18%, with a fall from £189,193 in December 2007 to £154,452 by March 2009. Transactional levels also dropped from 1.65 million to 730,000 from June 2008 to 2009.
While these figures presented a bad outlook for the market as a whole, UK property prices began to recover quicker than expected. By August 2010, average property prices had risen to £173,417, and by mid-2014, had fully recovered to pre-crisis levels.
Brexit has had the biggest strain on the UK property market in recent years, although the impact that Brexit had on property prices was not as dramatic as first expected. Following the EU Referendum on 23rd June, both a drop in average house prices and a dip in property market activity had been recorded. According to market data recorded by Halifax, property prices in the UK fell by 1% in July 2016 – a much lower drop than the 10% decrease predicted by the Treasury back in May of that same year.
Fast forward to October 2016, and there had been a sharp rise in the price of UK property, with house prices having risen by £2,623 in just one month. By October 2017, UK property prices had grown by 4.5%, and have continued to grow well into 2020, especially in key regions like the North West.
Be fearful when others are greedy and greedy when others are fearfulWarren Buffet
Why is Now a Good Time to Invest?
If you’re a first-time buyer in the UK property investment market, or even considering building your portfolio without investing money in the stock market, the time to start investing in UK property is now.
As Warren Buffet once said:
‘Be fearful when others are greedy and greedy when others are fearful’
This quote perfectly summarises the significance of investing during times of economic uncertainty. When others who would normally be buying and selling investments of their own are behaving cautiously, the most successful investors are those who act fast and take advantage of every opportunity to build wealth.
There’s a lot of evidence to suggest that right now is the best time to buy property for investment purposes. While past statistics have shown that property prices tend to drop following rocky periods, this period of low growth is often short-lived. The property market has shown time and time again how resilient it can be, and many savvy investors are taking advantage of recent economic changes that can help them get the most out of their investment.
Many international investors, for instance, have been investing in the UK property market as of late. With the value of the British Pound against the Dollar having fallen following the worldwide coronavirus outbreak, overseas investors have been able to take advantage of huge discounts on UK property and maximise their investment returns. While the stock market saw a turn for the worst in March, the property market has opened up new opportunities for investors wondering what to invest in now in the UK. A lot of investors who had tied up money in the stock market are instead choosing to purchase buy to let property, and reaping the benefits.
International investors aren’t the only group benefiting from below-market rates. A number of UK developers, including those behind upcoming off-plan projects available with RWinvest, have been offering temporary discounted rates on their properties. Savvy investors who are prepared to negotiate will find that they’re able to get the most for their money on top of the already below-market rates that come with off-plan properties. Those who were already thinking about investing have found that by buying property in today’s market, they were able to use the extra cash they’ve saved from discounted property rates and put this towards another investment, or save the lump sum of cash for future ventures.
Those who recognise that now is the best time to invest in property will find that by the time the Covid-19 pandemic has ended, the property market will recover and investments will have grown significantly in value. If you have the funds available, rather than simply leave your money untouched or dwindle away huge amounts on home improvements, getting started with investing could help you build wealth over time. For high rental returns, enhanced capital growth and the lowest possible rates, don’t hesitate to explore UK buy to let opportunities.
Find a Buy to Let Opportunity with RWinvest
If you’re still wondering ‘should I invest in property now or later?’, asking ‘why invest in property right now?’, and feeling unsure about what to invest in now when it comes to UK property opportunities, get in touch with RWinvest. We’re happy to talk potential you through the fantastic offers currently available and help open your eyes to the fact that the time to start investing is now. During this unprecedented time in the market, we’re utilising all online investment tools, allowing potential buyers to take a virtual tour of their property with the help of virtual reality in order to keep our staff and investors safe. If you would like to enquire about getting started with property investment and would like to take a virtual tour or viewing of one of our properties, please contact us today for more information.
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While our articles aim to offer some insight on the best ways to invest, the information we provide shouldn’t be taken as financial advice or tips on managing your money. For in-depth and expert help with your financial planning, we suggest speaking to a financial advisor before making any major personal finance decisions.