PROPERTY CONTINUES TO BE A SECURE, PROFITABLE INVESTMENT
The strength of property has once again surpassed expectations, with recent data affirming the high levels of demand for property we are currently witnessing here at Sequre.
As a result, house prices have risen. In fact, recent data from Halifax highlights that house prices in September were 7.3% higher than they were during the same period last year, which also represents a monthly rise of 1.6% from August.
This is a trend that appears to have continued throughout October, with Zoopla highlighting that sales agreed in October are up 53% from the same period last year.
This is good news for buy to let investors. Not only do owners benefit from capital gains on the property, but also the potential to achieve greater rental yields in line with current demand.
Considering the current state of the wider economy in the UK, this raises the question, why are we seeing such high levels of activity?
Lockdown 2.0: What are the effects on property?
Before delving into the level of activity, it is important to address the impact of the upcoming lockdown measures to be implemented across the UK. With the UK due to enter a second lockdown, or ‘Lockdown 2.0’ on Thursday 5th November, investors may be concerned about the viability of a property investment in the current economic climate.
Robert Jenrick, secretary of state for housing has confirmed that the property market is business as usual. Renters can move freely so long as standard COVID measures are enforced. There is unlikely to be any impact on the property market as a result of the measures to be introduced.
Government measures are currently working
It is obvious that the measures introduced by the Government, in particular Rishi Sunak, have had the desired effect of stimulating activity back into the property market after the ‘freeze’ that we witnessed back in March this year.
Most notably, the introduction of the Stamp Duty holiday has had the most positive impact on the market. In fact, almost one in four (24%) property investors stated they were planning to purchase at least one property to take advantage of the stamp duty savings, this number rising for first time buyers.
This is an opportune time for investment into the property market, particularly for those looking to expand their property portfolios.
Why now is the best time to invest
With interest rates remaining at a historic low of 0.1%, those holding large sums in savings accounts are likely to be losing out in real terms when compared to inflation. There has never been a more ideal time to invest.
Whilst all investments carry an element of risk, property has long been a secure investment that weathers periods of economic uncertainty. When compared against investments in stocks and shares, property is widely recognised as being far less volatile as evidenced in the graph below.
As you can see, the FTSE 100 is rapidly falling due to fears surrounding tighter coronavirus restrictions, whilst property continues to grow in strength and subsequent value.
Property historically remains a financially viable investment through periods of economic uncertainty. The decade following the 2008 financial crash, house prices increased at an average rate of 18% across the UK, with key areas increasing by up to 78% over this period.
Those that have invested in property are very likely to have benefited financially compared to those that have invested in stocks and shares, with this trend looking very likely to continue.
With the stamp duty holiday currently due to end on the 31st March 2021, there is already a defined timeframe to maximise the benefits from a property purchase. With the average completion time taking up to three months, buyers need to act fast.
Location is key
When making your investment, location is a significant factor to consider. Whilst we are seeing growth across the UK, some locations are performing better than others. This is the reason why Sequre is primarily focussing on properties in the North.
Liverpool, Nottingham and Leeds are currently achieving the greatest house price growth across the UK, with an annual rise of up to 4.7%. In contrast, traditionally popular areas such as Oxford and Cambridge are seeing lower growth of around 1% each.
Manchester and Liverpool have had consistent growth for several years now, with rental yields achieved being some of the highest across the UK when compared against property value. This is largely due to the continued impact of ‘Northshoring’.
With many businesses relocating their premises to the North for primarily cheaper rents, and the subsequent influx of talented younger professionals relocating to the North, we cannot envisage this high level of growth flatlining any time soon.
Because of this strength in the North, we are excited to have investment deals coming soon in Liverpool. Be sure to add Sequre Property Investments to your contacts, this will ensure you never miss out on our latest investment opportunities.
Sequre Property Investment are specialists in sourcing high-income producing buy to let property investments in key areas across the UK. Check out our available investments here, or to get in touch, you can contact us here.
or call us now on 0800 011 2277