The lead-up to the snap election has caused some disruption in the property market – especially as some polls predict a less certain outcome for the Conservative Party. As a result, some property experts anticipate a recession, with house prices dropping as a result of uncertainty and concern about the forthcoming Brexit negotiations. Here’s more information.
UK Property Investment – Are Prices Dropping?
In many parts of the UK, property values continue to rise, ensuring good capital growth for UK property investors. However, the latest figures, published by Nationwide Building Society, show that overall, property price growth rates have been dropping continuously since 2009, and show no signs of recovering in the current political climate.
Figures show that house price growth has been slowly falling since February 2017, with a 0.3% fall in March, 0.4% fall in April and 0.2% fall in May.
Property Investment Opportunities
Property prices continue to rise (up 2.1% from last year), but the rate of growth has slowed considerably, demonstrating lack of confidence in the market.
Experts suggest this is to do with gloomy predictions about the future of the housing market – with many UK property investors wondering if their purchases are likely to be cheaper a few months down the line. This is causing a loss of momentum, which is in turn reducing the number of available rental properties – a disastrous outcome for tenants desperately seeking somewhere to live.
Time for UK Property Investment?
Historically, general elections don’t tend to influence the property market that much. However, the added concerns about leaving the EU have had an impact, and it’s precisely this factor that is making investors wary.
However, others consider the slowing of house price growth to be an opportunity – a chance to invest in buy-to-let property for sale at a lower price, whilst tenant demand is still high.
Things to Consider
If you’re considering investing in property in the UK, it’s worthwhile talking to a property investment agent, who’ll have inside information about the current market, and will be able to guide your property search.
It’s also worthwhile thinking about:
The Buy2Let Shop
If you’re considering investing in property in the UK, it’s a good idea to talk to a property investment agent, who will offer support, guidance and advice throughout the process. The Buy2Let Shop are a team of expert property investment agents, and we offer a range of services, designed to empower your purchasing and ensure a good ROI.
To find out more, simply visit The Buy2Let Shop website today.