The average UK house prices increased to £312,000 during 2022, an increase of 16.4% over the year from 2021 due to high demand and consistent supply issues. This has led to investors agreeing that now is the time to invest in the property market.
Found in the House Price Index 2022, 3 major points were realised that have confirmed the advantage to investing in the property market:
• Average UK house prices increased by £6,000 between June and July this year, compared with a fall of £13,000 between the same months last year.
• The average UK house price was £292,000 in July 2022, which is £39,000 higher than this time last year.
• Average house prices increased over the year in England to £312,000 (16.4%), in Wales to £220,000 (17.6%), in Scotland to £193,000 (9.9%) and in Northern Ireland to £169,000 (9.6%).
Major housing supply issues alongside the current cost of living crisis means many looking to mortgage a house simply can’t; either they have been priced out of the market, or there is not enough stock in the area they wish to move to.
With an estimated need for the government to produce 300,000 new build homes per year, and only a half of that being met, investors are the next likely group to provide affordable housing to those currently priced out of mortgaging a home due to the current cost of living crisis.
Whilst investing in property may seem like a daunting task, it is quite simpler and more cost effective than most think. For the majority looking to involve themselves in the residential housing market, this is what you should know.
Purchasing property off-plan is a fantastic way to invest, as it is advocated as stable, well-paying, and cheaper than purchasing property pre-built. The way an investor may do this is by purchasing a property through a property services company or developer directly.
Investing results in a reliable passive income that can greatly benefit the investor and provide more opportunities to invest in an ever-increasing diversified portfolio due to the high returns property can offer.
Location is an important aspect to research. As of late, property in the North has increased 9.8% over the year to March 2022, a stark contrast to London, which has seen increases of only 4.8%. Choosing a location matters, as these yearly increases are the difference between building a portfolio that works for the investor or doesn’t.
The current supply and demand issues allow investors to control the market and guarantee healthy passive income, benefitting from yields of up to 7%, whilst solving the supply issues and providing residents with affordable housing.