Could UK property prices rise even further?

Could UK property prices rise even further?

It’s a question that many current and prospective property investors in the UK will be asking themselves about the property price rise in the buy-to-let market. If we rewind two years, then the prospect of such a jump in prices seemed remote. With a lockdown in place and Covid-19 running rampant, the economy had been effectively shut down with no end in sight and house sales had been paused.

Not exactly the conditions for a flourishing housing market, you’d correctly assume.

Due to a multitude of factors, however, the market thrived and we’re now seeing that house prices across the UK since the beginning of the pandemic have risen by almost 20%, with particular rises in areas such as Manchester and Swansea.

Thanks to shifting attitudes during the pandemic, changing working practices and government assistance, the market flew following the lifting of the lockdown, and appears to have sparked a rush for property whilst prices are rising so quickly.

Could this continue?

Record UK property prices for investors

According to new figures released by the Reallymoving House Price Forecast, and reported by Property Industry Eye, suggests that prices could be set to rise at a record rate this year.

According to the report, ‘UK house prices look set for new record highs in the coming months despite the cost of living squeeze.

Residential property prices have continued soaring in recent months despite 30-year high inflation and a worsening cost-of-living crisis, and the signs are that they will rise further in the coming months in light of the ongoing supply-demand imbalance.

The imbalance between supply and demand will continue to drive prices upwards through the spring despite growing pressures on household finances and rising borrowing costs’

This report and these figures suggest that the factors that have led to the current market conditions, with a pronounced lack of supply to meet demand, will continue throughout the year and potentially into next.

Initially, at the beginning of the year, the suggestion was that these price rises couldn’t continue at the same pace as we’d seen through 2020 and 2021, but that expectation, like so many, seems set to be cast aside as the year progresses.

All this then leads to the question you’re probably asking yourself about whether to either invest for the first time or increase your investment. We can’t answer that question directly for you, as it will depend broadly on your circumstances, but the current data seems clear – the market will continue to be very buoyant for some time and given current economic circumstances that’s a very attractive place to put your money.

With inflation running close to 8%, living costs increasing and the stock markets volatile, you could do much worse than the safety and growth of the UK property and buy-to-let market more specifically.

If you need any advice on an existing property or would like to begin the investment process please don’t hesitate to contact our experienced and dedicated team.

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