What to expect from the summer property market
Housing activity in the UK typically spikes during the warmer months of the year; a common trend within the sector. However, with the recent government announcements affecting those purchasing second properties, what affect is this change likely to have on the market during its peak season?
The team at Sequre have seen a vast increase in the number of buy to let enquiries from investors this month, despite the stamp duty change, and we feel confident that the market is heading in the right direction. Research demonstrates that property remains a viable and profitable option for investment. Here, we give our market activity predictions for the months ahead –
Rising House Prices
Although the market appears to have skipped the usual ‘winter dip’ in house prices, it is still likely that prices will continue to rise in months such as June and July due to the hive of activity in the housing market. During the summer months, rental tenancies are often renewed, owner occupiers seek to value their properties and first time buyers take advantage of the increase in stock levels.
The increased demand undoubtedly has an effect on the market and there are already reports of prices rising further. Capital growth is always a positive sign for investors and summer months are a great time to sell for those wanting to utilise their assets.
Continued Investor Activity
It was recently reported by the Council of Mortgage Lenders (CML) that lending for buy to let mortgages rose by 60% in February, an increase of almost two thirds when compared to the same month of the previous year. While this is clearly proof of the rising popularity of buy to let, the stamp duty changes introduced on 1st April are likely to have played a part in this lending increase.
While numerous media outlets have predicted/reported a slow-down in the buy to let market, Sequre has not seen any sign of this. Investing in bricks and mortar has outperformed all other investment vehicles since 1996 and will continue to do so despite the changes. While the introduction of new stamp duty thresholds for investors may cause some landlords to be slightly more cautious, the rest of the market seems undeterred as almost 80% of existing investors have revealed that they will continue to expand their portfolios. With such high returns still to be made, it would be unfathomable to write off buy to let as a poor investment choice – as long as investors continue to make smart decisions and seek advice from experts in the property investment field. Investors are still very much able to achieve a generous profit from their assets for many years to come.
Help To Buy
First introduced to the market in 2013, Help to Buy has allowed over 150,000 young buyers and those on lower than average incomes to step onto the property ladder. The government scheme has been adapted over the course of the years and has added other features into the programme, such as the new government funded ISAs, to help boost the number of first time buyers in the UK. While Help to Buy may have no direct link to benefitting investors, it does demonstrate the government recognising the need for a balanced market. With these initiatives in place, and the success seen from the programme so far, we can remain hopeful that the number of new housing schemes will increase in order to meet general demand.
Property is still the best performing asset class. Contact us today to find out more about buy to let and how it can provide a healthy second income for you and your family. Our professional property consultants are extremely knowledgeable on buy to let and can answer any questions you may have about high yielding, hands-off investments. Plus, our property deals are always negotiated with genuine discounts, resulting in instant equity from day one. Call us on 0800 011 2277.