If you’re looking for buy-to-let property for sale in the UK, you’re probably focused on house prices – and whether they look set to rise or fall in your chosen area.
There are a range of factors that affect the value of a property. Some factors lie within the house itself, and others are to do with the surrounding area, or even the political situation at the time. This article identifies which factors affect house prices – from the state of the bathroom to the EU referendum.
Property Investment Opportunities – The Factors Affecting House Prices
- The property. Aspects of the house itself will inevitably have an effect on its value. However, tastes change – and this means that the appeal of the property can fluctuate. For example, crime in the local area, or even global terrorist incidences like the Brussels Attack, can make home-buyers more anxious about security – and a property with obvious security is then more likely to appeal. Likewise, houses which feature 1950s original features are now highly sought-after – yet ten years ago were regarded as dated!
- The immediate surroundings. Generally speaking, home-buyers or renters like to be in the vicinity of amenities – such as a local shop and a pub, where they can watch Six Nations Rugby! If an area gets a new restaurant, shop or pub, this can send prices up. Likewise, if a valued amenity shuts down, the reverse can happen.
- The village, town or city. Towns and cities are in a constant state of change. When seeking out property investment opportunities, try to find out if there are any plans for regeneration in the area – as improvements send property prices soaring. Likewise, new transport links always boost home values, and factors like schools and communal facilities (like swimming pools and cinemas) also affect price.
- The political climate and the news. External factors such as politics can also affect property values. For example, the forthcoming EU referendum is predicted to make house prices dip – at least for a short period of time. A Brexit decision seems likely to send them dropping further. The UK Budget always has an impact on the value of housing – as was seen recently with George Osborne’s announcement of Stamp Duty hikes.
- Mortgage availability. Between 1996 and 2006, banks were keen to lend money to property investors. However, the credit crunch of 2007 meant that mortgages became harder to secure – and this tightening on lending had an effect on property prices.
Finding Property Investment Opportunities
When investing in property in the UK, always assess the factors that affect house prices. Also, don’t just focus on the present. Try to forecast what prices are likely to do in the future. It’s a good idea to gain familiarity with the market – a property seminar is a great way to achieve this.
The Buy2Let Shop Limited
If you’re looking for buy-to-let property for sale, and you want to find out more about property prices in the area, talk to The Buy2Let Shop team. We’re specialist property investment agents in Bromley, and we’re on hand to help you identify great property investment opportunities. We also offer assistance with buying a house at auction, and regularly host property seminars in London.
To find out more about our services, simply visit our website today.