The Future of Property Investments
Traditionally property has been about bricks and mortar, however property has emerged as one of the most lucrative assets that helps to maximise people’s income. Over recent years, uncertainty has arisen surrounding the outcome of Brexit negotiations as forecasts have predicted the referendum to overshadow the UK property market after the UK leaves the EU in 2019. Brexit, however, is not the only momentous change in the property market that may affect its performance in the future.
Industry experts and investors are wary of changes in interest and currency rates, which are in a constant state of fluctuation. For those considering whether now is a good time to invest in property, these times can be disorientating and confusing, particularly for a novice. Economic growth is the main driving force behind rising property prices, which has the potential to shape the property market over the forthcoming years.
London was once known for its role as a leading financial hub, however London after Brexit has become dramatically affected, the same way certain people initially feared. London’s housing market is expected to embark on a ‘pull back’ in 2019, as house prices across the capital are beginning to deteriorate, whereas the north-west is expected to maintain ‘solid momentum’. Despite the circulating uncertainty, London has long been recognised as a hotspot that serves a haven for foreign investors, however Liverpool is rising as the latest contender for securing foreign investment, in an economy worth more than £121 billion and with 252,000 businesses.
One of the first things to consider in the housing market is the direction house prices are likely to go. Through investing, providing you choose a lucrative location, capital growth can be obtained, meaning that the average price of a house is likely to increase over time with some areas of Britain becoming more profitable than others. These capital gains are one of the biggest draws to property investment, but it is essential that property investment moves with the times in the future.
The way the world works is changing at pace, which is altering people’s perceptions and expectations of the environment around them, with property evolving with the times. Property would become defunct if it failed to keep up with the demands set by both tenants, landlords, and investors, and this change is only set to increase in the future. But have you ever considered how the housing landscape has changed already?
It is over two decades since the great British property boom began. Since 1996, average house prices have increase by an astounding 281% across the UK with buy to let landlords having benefitted the most. Buy to let landlords typically earned returns of £14,987 for each £1,000 they invested 20 years ago. For what reasons? Is this because the landlord is more aware of their tenant demands?
A report by YouGov discovered that 80% of British adults are aspiring to buy a property within the next 10 years, but as tenant demand changes it is important for any investor to meet these new conditions to secure longevity in their investment. Property investment is a resilient asset that is able to withstand periods of market volatility, although the market landscape may seem sporadic, there is large movement for growth, producing robust long-term rental returns and excellent capital growth in properties from companies like RW Invest.