The short answer is – yes, it can be. It mostly relies on the kind of investment you’re searching for and the reason behind your investment activities. In other words, it all depends on the reason why you need the money.
Main points in this blog:
- House price increases aren’t a true picture of the market’s current development
- The rate of price increase has now begun to decline due to a variety of factors such as the cost of living crisis affecting demand
- Depending on the type of investment you’re searching for will determine whether investing in property is worthwhile
House price increased throughout 2020-2022
The Office for National Statistics tracks trends in the real estate market using information from HM Land Registry. In July 2022, it reported a startling 15.5% increase in housing prices year over year, up from 7.8% the month prior.
Given this information, it could be easy to think that now is not the best time to invest in property, but It’s crucial to keep in mind that this increase isn’t a true picture of the market’s current development because it mostly results from the decline in house prices brought on by changes to the stamp duty holiday a year earlier.
Because there are fewer houses for sale than there are potential purchasers, housing prices are being kept high. However, the rate of price increase has now begun to decline.
So will house prices now decline some more?
There are no guarantees, however, house prices could continue to fall. There are some factors at play that could contribute to a decline in house prices, including:
- As a result of growing prices for products and services compared to a year ago, we are experiencing a crisis in the cost of living. Fewer individuals will be able to save enough money to buy because of overstretched budgets.
- Mortgages are now more expensive as interest rates have jumped from their historical lows of 0.1% in December to 2.25% at the present time. The pound is also now at its lowest against the dollar in recent memory. This is likely to lower demand but also the market’s reluctance to accept offers/ enter into negotiation particularly if the vendors are motivated sellers
- In 2021, home prices increased very quickly, and they may “correct” by dropping just as quickly.
- People may struggle to satisfy their mortgage obligations and end up having to sell their homes as a result of rising expenditures, particularly energy costs. Housing supply will grow, which might result in lower pricing.
- Future limits cannot be ruled out because the pandemic has not ended.
All of this considered, is now a good time to purchase property?
Many industry observers emphasise that buying real estate is a long-term investment, not a quick trade and that is what distinguishes it from other significant financial markets.
Remember, a property investment is exactly what it says on the tin – it’s an investment. Hoping for quick wins may not always prove fruitful, but those that are in it for the long term are more likely to see gains.
Looking for your next buy-to-let property?
Many industry observers emphasise that buying real estate is a long-term investment, not a quick trade and that is what distinguishes it from other significant financial markets.
Remember, a property investment is exactly what it says on the tin – it’s an investment. Hoping for quick wins may not always prove fruitful, but those that are in it for the long term are more likely to see gains.
Take a look at the property we have for sale in Nottingham and Nottinghamshire here.
