Now that 2016 has drawn to a close, it’s time to review the last year and work out what 2017 has in store for property investors and landlords. It’s been a time of uncertainty (and of opportunity), and already, experts are predicting that 2017 may follow the same pattern.
Here’s a round-up of 2016, with some useful predictions for the future.
Investing in Property in the UK – A Year of Uncertainty?
2016 is likely to be remembered for its political turmoil; most notably, the EU Referendum result. At the news of Brexit, property investment in the UK slowed considerably, which had a knock-on effect on property prices, notably in high-value areas such as Chelsea and Kensington. Stamp Duty hikes in April also shook landlords across the country, with many concerned about the 3% rise and how it would affect their profit margins.
However, a buoyant rental market meant that landlords still enjoyed considerable demand, and in some areas (particularly London and other major cities), rental prices soared, which meant many UK property investors benefitted from a good ROI.
Property Investment Opportunities in Unlikely Areas
Despite uncertainty, many UK locations saw property prices escalate at a considerable rate. According to RightMove, Bath in Somerset saw prices leap by 17.8%, and Wellingborough in Northamptonshire wasn’t far behind, with a 14.9% increase.
Likewise, many London locations such as Newham and Bromley experienced considerable growth; marking them as property investment hotspots to keep an eye on.
Investing in UK Property – Rental Yields
In 2016, the North firmly established itself as a serious contender on the rental market – with Manchester offering the highest rental yields in the country (6.02%). Liverpool was in second place, offering attractive yields of 5.16%.
However, those looking for longer-term profit in capital gains kept their search firmly focused in the South-East, with Inner London still presenting the best profit margins (an average 7.81% capital growth).
What Does the Future Hold?
Experts say that 2017 may see a slowdown in property price growth. Nationwide predicts prices will stall, which may be useful for landlords seeking property investment opportunities at a price that suits. Additionally, the impending triggering of Article 50 is likely to result in further uncertainty, which may make investors more cautious.
Our advice? Use the uncertainty to your advantage. Savvy investors should look to upcoming areas; places that are being regenerated or that look likely to experience price growth in the future. It also makes sense to explore buying options – often the best bargains can be found at property auctions, and with specialist property investment agents.
The Buy2Let Shop in Bromley
If you’re thinking of investing in property in the UK and you’d like help with the process, talk to The Buy2Let Shop. We’re a team of expert property investment agents in London, and we’re here to assist with all aspects of UK property investment, including buying a house at auction and sourcing the best properties at the best possible price.
If you’d like to find out more about our services, which also include regular property investment seminars in London, simply visit The Buy2Let Shop website today.