You only have to look at the various changes in the value of various properties in the UK over the past ten years to see that what we are paying in terms of investment and mortgage purchase is on the up and up. At Family Homes, we have kept a close eye on the housing market over the past year, and 2016 was somewhat dramatic – with a rise peaking in April only to be hit by a dip following the emergence of Brexit. While the UK’s exist from the European Union may not be due to occur until 2019, confidence in the market took a hit as did other areas of economic investment – but this appears to be on the heal, particularly as the UK economy seems to have remained considerably resolute in the face of uncertainty.
We have, in fact, seen economic growth – this, it’s assumed, is due to foreign interest in housing investment increasing after the pound took a considerable hit against the Euro after the Brexit referendum results were made clear. Rates of change in housing prices are back on the up spike, particularly in the East, South and in London, despite such uncertainty facing the British economy. What does this mean for investors? It’s quite simple – now still appears to be a very good time to get buying, as while Brexit is due to unfold, the pound remains weakened – and value of properties in high interest areas such as the East and the capital look to be on the up and up.
However, this isn’t to say that the housing market will see guaranteed growth in the months to come. Brexit is still very much an unknown entity and budget decisions made by the government in recent months could make the year-on-year outlook for 2017 on 2016 seems very different indeed. However, there is certainly the argument that property prices could be due to bounce back from any hits they take – with Nationwide’s Robert Gardner – the firm’s chief economist – advising that the economy’s surprising strength following the Brexit referendum could inspire optimism.
However, Gardner remains unsure on the housing market – and while I, too, am confident that housing process will ride the storm of Brexit and the falling pound, caution must almost certainly be advised. For one, Gardner advises that low borrowing costs could help to contribute to a decline over 2017 in general – though house prices are fairly likely to continue rising, if only a little.
We are, however, still seeing a large number of international buyers investing in Central London resulting in local Londoners being priced out the market. These local Londoners are smart people, however – and we are seeing a clear indication of people searching for their next Family Home in the garden of England, Kent, with towns such as Chatham, Gillingham and our home town of Sittingbourne seeing large numbers of properties being purchased by Londoners. These buyers are happy to live out of town – and may even actively enjoy an hour or so’s journey by jumping on a train directly into bustling London Victoria.
These smart investors are showing a keen understanding in value for money – and the attraction of the Kent countryside is arguably more appealing than the London market with far lower house prices in comparison. Sittingbourne, for example, is ideally located, with direct links into London and the coast – and with affordable house prices the area presents an excellent opportunity to either get on the property ladder or upgrade whilst having the certainty – and peace of mind – that strong capital growth is still achievable over the next few years.
As a property investor, I love properties and people in equal measure – and, as such, I am keen to help people looking to purchase their next home or investment. My goldmine area is Sittingbourne as I have been successfully investing in this town for the last 25 years. A part of successful property investing either for owner occupation or for letting is knowing the area within which you intend to buy. I am happy to share my knowledge of the local area at no cost to readers such as yourself – and if we haven’t got the property you are looking for, we may be able to put you in touch with a friendly agent in another town to find you that perfect fit.
Investing in property is still a fantastic way to boost your income if you have capital available – take it from me, and from all of us at Family Homes! If you have any concerns regarding the housing market, or would like to know more about getting started in property investment, call us today on 01795 473434 – or do email me at email@example.com with your thoughts.
Director, Family Homes