UK property prices have fallen for the first time in five years – which has ignited interest in UK property investment. The latest data shows that from January to April 2017, house prices fell by 0.2% – the first drop that the country has seen since 2012.
Implications for UK Property Investment
At present, the average property in the UK costs £219,649; £440 less than previously. This may not seem like a steep drop, but the declining prices mark a possible trend, as homebuyers become more reluctant to make a purchase.
For serious property investors it’s welcome news, particularly if prices reduce further, which may be the case. The forthcoming general election, not to mention the impending Brexit negotiations, have cast uncertainty on the market, which may drive prices down even more in the future.
Is Now the Time to Buy?
If you select the right area and target the right tenant demographic, then now is a good time to search for buy-to-let property for sale. If you’re considering investing in UK property, here are a list of things to consider:
- Upcoming areas. When browsing the market, think of the future, not just the present. For example, areas that are scheduled for serious regeneration often enjoy a rise in property prices, which means good capital growth and more tenant demand. Likewise, locations that are set to benefit from new transport links (e.g. Crossrail and Crossrail 2) usually go up in price. If you’re not sure where to start looking, talk to a property investment agent.
- Tenant demand. If you’re looking for buy-to-let property for sale, it’s imperative to check what level of tenant demand there is in the area. If you’re planning to rent to students, it makes sense to find out more about the student population and popular areas near the university / college grounds. If renting to families, find out where most families rent (it’s often near schools, transport links and amenities!).
- Rental yield. When seeking property investment opportunities, ask yourself whether it’s more important to generate a solid monthly income from rental yield, or a long-term profit in the form of capital growth. For example, cities in the North like Manchester and Liverpool offer excellent rental yield, whereas locations in the South-East (notably London) promise good ROI in the longer-term.
- Bargain opportunities. When searching for investment properties in the UK, try to think outside the box – as the best prices usually aren’t found in estate agent windows. Buying a house at auction is a great option, as buyers usually save around 15% on the market price. Likewise, working with a property investment agent is a shrewd move, as they often have properties on their books that are competitively priced to sell.
The Buy2Let Shop
If you’re looking for investment properties in London or anywhere in the UK, talk to The Buy2Let Shop. Our team of expert property investment agents offer a range of services, designed to empower your property search and generate great ROI.
To find out more, simply visit The Buy2Let Shop website today.