The Buy2Let Shop, One Elmfield Park, Bromley, BR1 1LU
020 3504 1310 info@thebuy2letshop.com

Slowing Property Market – Property Investment Opportunities?

According to the latest figures, the number of mortgages approved has fallen again – the fourth consecutive time in as many months. In May 2017, just over 40,000 mortgages were approved in the UK – considerably less than usual. In fact, a few years ago, the average was closer to 60,000 per month, which demonstrates clearly how much demand has fallen.

What’s the reason for this slow-down in the market, and more importantly, what impact does it have on UK property investors? Here are some more details.

What’s Causing it?

Despite numbers of approved mortgages falling, house prices continue to rise in many parts of the country – which in turn, is putting those most likely to need mortgages off buying – i.e. first-time buyers.

However, other factors are at work here. Last year’s political turmoil has had impact on the market, with many investors reluctant to look for buy-to-let property for sale until the future is a little more certain. Likewise, rising rates of inflation and increased living costs are all affecting house sales.

What Does This Mean for UK Property Investment?

Experts have been predicting a slow-down in the market, which will eventually have a knock-on effect on prices in certain locations (notably London). Indeed, the effects can already be seen in the capital, where investment properties in the capital are dropping in price substantially, particularly in locations like Chelsea and Kensington.

Whilst it’s mildly concerning for the property market as a whole (not to mention first-time buyers), it may present good property investment opportunities for savvy landlords. The buy-to-let market is buoyant at the moment, with increasing numbers of people moving into rented accommodation, and with house prices stagnating, this means investors could buy a property at a reasonable price, then generate a good rental income from it.

Investing in UK Property

If you want to explore the option of UK property investment, take the following into consideration:

  • Recent performance. When selecting an area, examine the market carefully. Have house prices risen in recent years? What is the average rental yield? Good investors always try to get the bigger picture, not just a snapshot of what’s happening at the present time.

 

  • Upcoming plans. Look for areas that are scheduled for regeneration or development, as it’s likely that house prices will rise as a result. For example, locations that are scheduled to receive a Crossrail 2 station are already starting to see an increase in property prices.

 

  • The rental market. Whenever you look for buy-to-let property for sale, you should think about current demand, and your target demographic. If demand is outstripping supply, and average rental yields are high, take this as a green light to start searching.

The Buy2Let Shop Limited

Are you looking for buy-to-let property for sale in the UK? If so, talk to The Buy2Let Shop team. We’re expert property investment agents, with a number of appealing properties on our books, all priced competitively to sell.

We offer a range of services, including assistance with buying a house at auction, and we regularly host helpful property seminars. To find out more, simply visit The Buy2Let Shop website today.

Leave a Reply

Your email address will not be published. Required fields are marked *