Is This the ‘Right Time’ to Invest in Property?

Property Market is

Resilient

Throughout periods of economic struggle, the property market has managed to recover. For example, during the Great Recession of 2007-2009, property prices were hit hard. According to data from the Land Registry Index, the average price of a property in the UK dropped by 18%. However, whilst these figures seemed bad at the time, the market began to recover much quicker than expected. By mid-2014, property prices had returned to pre-recession levels.

In addition, if we take Brexit as an example, property prices dipped following the EU referendum. According to market data recorded by Halifax, property prices in the UK fell by 1% in July 2016. However, this is a much lower drop than the 10% decrease predicted by the Treasury back in May of that same year. When we look forward to now, prices have continued to rise, especially in the Northern regions.

As we can see from history, in the long-term, you will almost certainly not lose any money investing in property. The average property prices have almost tripled in the UK over the last 20 years from £89,000 in 2000 to over £250,000 in 2021. This exceptional growth covers both periods of financial uncertainty. As long as you are able to hold onto your property for a long period of time, you can be certain it will increase in price.

Long-term Growth

When it comes to deciding on the right time to invest, you need to bear in mind that property investment is a long game. Essentially, the longer you can hold onto your property, the higher the returns on your investment. Despite the challenges the market has faced, the outlook for UK property remains exceptionally positive. According to the UK house price index, over the last year, there has been the highest level of growth since August 2007. Investors can be sure that even throughout peaks and troughs, prices will eventually rise.