Thursday 15 July 2021
The Royal Institution of Chartered Surveyors members think house prices will continue to rise over the next year. So now is the perfect time to invest in a buy to let property.
A positive article posted by the BBC predicts that house prices will continue to increase as the supply shrinks, a message at ERE Property that we’ve continually echoed.
A lack of available properties is helping to push up house prices. This shrinking supply means the number of new properties coming to the market fell by a third in June. Despite the lack of supply, it was the busiest sales month on record for some surveyors with the ending of the stamp duty incentives for houses over £250k.
Looking ahead, a net balance of 56% of surveyors anticipated that prices will continue to increase over the next twelve months.
Yorkshire & the Humber was one of the regions noted for a particularly sharp rise in values as also echoed by Zoopla data in the most recent article we’ve posted. Click here to read.
A reform in the planning system will have helped with the supply of property as it is easier for developers to enter the market in some cases. However, it’s just not enough for the amount of people looking to purchase a property. Because of this, prices will continue to rise as people compete to purchase.
However, it isn’t just property purchasing that’s increasing. Tenant demand also rose in June, boosting the rental market and pushing up rental prices. A net balance of 60% of surveyors noted a rise in demand, up from 48% in May. However, a shortfall in new landlord instructions intensified with a net balance of -32% of surveyors reporting a decline in supply. This surge in rental demand and lack of supply is creating the perfect buy to let property investment opportunity. When you pair this with the predicted house price growth for the next few years, it is clear that now is the time to invest.
Surveyors predicted rental growth would grow slightly as a result, suggesting a 3% rise over the coming twelve months, including in London, where the rental market has bounced back since a RICS assessment earlier in the year.
According to Zoopla, rents are rising at an average rate of 3.6% a year, the highest rate of
growth in five years. This expected growth will result in strong yields for property investors.
Another positive article for property with positive data to back it up. Buy to let property investment can be argued to be one of the safest investment classes & over the long term is continually increasing in value.
If you are in a position where you’re ready to grow or start your property investment journey, one of our Investment Directors will be happy to speak through options to suit your goals.
Alternatively, if you already have a portfolio of buy to let property investments but would like a more hands-off, hassle free investment then our Property Management team will be equally as happy to speak with you.