Why 2023 is the Best Time to Invest in Property in the United Kingdom
Every year, those thinking about investing in property for the first time and even current landlords ask themselves whether it’s the right time to expand their portfolio if they can. So, given that annual price growth has been slowing since the summer of 2022, will 2023 be a best time to invest?
We believe it could be – depending on
what you are looking for from property investment. Although average capital
values are predicted to fall this year, this is of the back of double digit
market growth for many properties through the pandemic and is expected to
recover well within five years. In addition, rents have been rising strongly
for most properties due to a lack of stock. And given that buy-to-let is a
longer term investment strategy, slower property price growth, coupled with
strong rental growth, could work in new and existing landlords’ favour.
Looking back, the UK has hardly been
subject to economic stability throughout 2022, has it? There has been high
inflation and, with it, increased interest rates, as well as a number of
different industries striking and a continuing surge in energy
prices.
When you consider the current housing
market, it continues to have a reasonable amount of momentum. This is
impressive and goes to show the volatility of the market as this momentum has
managed to carry on even throughout a pandemic, the cost of living crisis that
the UK has been going through the past few months, and political uncertainty.
House prices increased thanks to a
strong demand for property but only a limited supply. Essentially, when you
consider the number of people who wanted to buy a property compared to the
number of properties that were actually for sale, these figures are very
unbalanced.
Property investment has generated a
great deal of wealth for people, but amongst that wealth generation, you need
to be buying your property at the right time. This means capitalizing when
house prices go down so that you can rent the property out for more of a profit
or will see more significant returns if you decide to sell the property later
down the line.
Even though purchasing a property can
be a good investment and now seems like a solid time to do it, it can also be
very tough choosing the right property. If you need help, then do not hesitate
to contact Property
Classified.
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