Over recent years, property has built a reputation as a potentially stable asset during times of economic uncertainty.
Perhaps the most significant example would be during the Covid-19 pandemic back in 2020. Experts predicted that the UK property market would see a hugely negative impact, and with the stock market having experienced its worst crash since 1987, investors were left not knowing where to put their money.
Those who did invest in property, however, benefitted from some fantastic returns, with the market proving incredibly resilient during this period. Despite initial drops in market activity, average property prices in the UK saw significant growth in value, reaching record highs by August 2020, just five months after the announcement of the global pandemic.
Property prices continued to increase over the years, fuelled by high property market demand from buyers and renters. Average UK house prices saw a recorded 20.4% rise between 2020 and 2023, compared to just 7.8% growth throughout the three years prior.
The UK property market has been performing well over recent months, starting with a bang in January with record numbers of new sellers. Halifax reported prices having rose by 0.7% in January to a new record high, with predictions for further average growth of 4% for 2025 according to Savills.
The uncertainty of Trump’s tariffs also brings a lot of opportunity for investors. With rising mortgage rates meaning that many potential buyers are being steered towards the rental market, already high rental demand could see a further increase.
