Demand for investment property booming!
June 17, 2022
Whether a rollover of nostalgia following the Queen's Jubilee weekend, current global economic conditions and outlook, cost of energy going up, the losses and downturn in crypto currency, the Russian/Ukrainian war or maybe concerns about the stock market - or maybe a combination of some or all of these factors - bricks and mortar investment is growing across all quarters in the UK.
First-time BTL buyers are investing, existing landlords are investing, banks are investing, pension funds are investing, social housing providers are investing and now the government wants people on benefits to invest. Affordability will play a part, especially for the latter, however, many of those looking to buy are well funded and have access to significant reserves or debt to support.
Growing demand is highlighted on Vesta with our website traffic already up over 150% year on year and new 'buy' enquiries are pouring in every day! We thought we were busy and then someone somewhere flicked a 'supercharge' switch in this quarter.
To put it simply, property and investment property has always been a great and steady performer versus many of the other investment options available. Real estate is an investment that is backed by strong historical records and the security of a tangible asset. Rising home values and rents are often an excellent hedge against inflation. Rental properties provide a consistent monthly cash flow you can rely on. So, it is no surprise with the current economic climate that investment in property is once again being supercharged!
Of course, there are risks and you need to ensure you have the right investment strategies in place. For example, buying the right type of properties in the right areas with rental demand and good yields. Timing can also make a big difference if you are seeking capital value increases - buy when the market is low and sell when high - however, if you are looking for long-term income this is far less relevant.
If you are considering selling or buying an investment property or simply want an investment valuation, please get in touch, or visit www.vestaproperty.com/sell so we can start the process with you.