Why Buy-to-Let Investors Should Think Long-Term Strategy
Property investors in the UK should consider long-term investment strategies rather than reacting to short-term market fluctuations, according to the latest data from Property Report.
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How Have UK Housing Prices Grown Over the Years
Analysing UK housing market data from the 1970s, the article states that the UK average property price surpassed £10K in January 1976.
Afterwards, it took 12.5 years for prices to reach £50K. However, prices may have reached those levels sooner if not for the early 80s recession.
Rates climbed slowly over the next 13 years, reaching £100K in 2002. Again, economic issues in the early 90s prevented prices from rising higher.
Prices reached £150K in August 2004, partly due to the price explosion following the mortgage bubble after the US subprime scandal. However, when the 2008 financial crisis hit, price growth slumped. As such, the UK property prices took 11 years to hit £200K. Following those milestones, it took another 5.6 years to surpass £250K.
These figures can be seen more clearly in the table below:
|Property Price||Date Achieved|
For a detailed look back on prices over the year, read our House Price Index (UK) guide.
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When Could UK Property Prices Reach £300K?
Considering the current house growth rate, these figures suggest the average UK house price may reach £300K by August 2025.
According to HM Land Registry, the average UK house price currently stands at £289,824.
EasyMoney CEO Jason Ferrando had the following to say:
“On a short-term basis, the UK housing market is certainly susceptible to wider economic ebbs, flows, and woes. But when you step back and look at the market’s long-term performance, it’s precise how strong, reliable, and resilient UK housing is as an investment asset.
“As such, if investors are attracted to the property market, we would encourage them to shake off any concerns about the immediate economic landscape and instead look at long-term performance and consistency of the market’s performance over the last 50 years.”
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Whether you are new to buy-to-let property investments or sitting on an established property portfolio, patience is vital as the UK navigates short-term economic uncertainty.
The UK property market has proved remarkably consistent over the years. Long-term property investments could allow for substantial capital appreciation on the price of the house – not to mention a constant cash flow from active tenancies.
If you are worried about losing capital, due diligence and thorough market research can help you identify more lucrative areas than others.
For example, Savills residential forecast indicates the North West will top the UK charts regarding capital growth from now until 2027, predicting an 11.70% capital growth. As such, investors may want to focus their buy-to-let investment strategies on attractive regional areas, such as the property sectors in Liverpool and Manchester.
While headlines sometimes make for uncomfortable reading, the property market continues to move in the right direction for buy-to-let investors.
Looking to get a start in property investment in the UK? Our up-to-date guides detail real estate investing for beginners and feature the latest statistics and market analysis.