Would you invest in the UK property market?

Economists agreed that the EU referendum, regardless of result, was set to change the face of the UK property market. A “leave” vote was, economists forecasted, liable to result in a drop in house prices. In light of the result, were the economists correct? Is property still a viable investment?

You’ll be understandably keen to insure your investment returns value. A key indicator here is house prices. While not all capital gain in property comes from the house price itself, it is a useful guide as to how the market is performing. It should please you to hear, then, that property remains a rock strong option for investment.

National UK Market

Taken as a whole the UK house market is performing well. Average house prices have been increasing since late 2012, and while dips do occur, the overall picture remains positive after the vote. The average price and number of high-value properties (over £1m) also both indicate a strong and healthy market. These increases have, in turn, seen deposit and repayment terms getting higher, with a salary of some £64,000 required to buy the average home in 2020 (up from £52,000 in 2016).

The property market has responded with positivity and buyers are returning to the market for the first time in seven months. A buoyant market is likely to increase prices further and so, if investment is on your agenda, time is of the essence.

The Bristol Market

Once away from the homogenising effects of national trends, local markets require a keen eye and knowledge of the area to maximise property investment gains. Here too the market remains very strong and positive, with year on year price growth in the double digits. House prices in Bristol are nine times higher than they were 20 years ago. Correspondingly, Santander predict high-value housing will increase by nearly 2% over current levels by 2030, and deposit requirements will continue to rise. This shows outstanding local property performance, especially when compared to the national average. Bristol has one of the country’s top performing property markets.

The issue at the heart of this is one of supply and demand. The new Bristol mayor, Marvin Rees, has pledged 2000 new homes per year in an attempt to alleviate supply issues. Whether this target can be met or not remains an open question.

The property market, both in the short and long term, is performing very well; there is no doubt that property remains a strong, secure, and profitable way of investing.

Hubb can help you get onto the property ladder. From £10,000, you can start your own property portfolio.