House price growth isn’t slowing down just yet

House price growth isn’t slowing down just yet

It’s been a wild year or two for property, and the country as a whole. It’s possible that only in the years to come that we will be able to look back and take true stock of just how life-changing the past 18 months have been.

Things changed overnight to such an enormous extent that local government planning for public transport infrastructure essentially had to be scrapped and re-imagined for an age where almost half of people work from home on a temporary or permanent basis.

Almost the entire economy has, to varying extents, had to re-assess and rebuild nearly their whole work force. If we take, for example, hospitality and logistics (lorry driving), they lost huge sections of their work force to other areas of the economy due to shutdowns and are now struggling to fill vacancies to such an extent that jobs that were previously paying around minimum wage have almost doubled their hourly rate.

By almost any estimation that’s a once-in-a-lifetime event that will change the landscape of the entire world for decades, if not centuries.

The property market doesn’t appear to be any different in that respect, but perhaps only in the sense that rather than seeing any sort of depression or dip, it actually grew.

Rising prices

As a property investor or landlord this is, of course, great news. Varying explanations do the rounds fairly regularly, from government intervention to shifting priorities for buyers and renters alike.

That being said, what we know for certain is that things have changed, and it seems increasingly unlikely that they’re going to revert back to the norm any time soon.

To highlight that, the BBC reported that ‘Annual house price growth of 10% or more has been recorded for each of the past five months, according to data from Nationwide.

The UK’s largest building society said that prices in September were up 10% compared with a year earlier, a slight slowdown from 11% in August.

The double-digit rise was driven by recent activity in Wales and Northern Ireland, the lender said, with London still seeing the slowest growth.

The typical home now costs £248,742.’

This represents staggering growth that is both high and sustained.

For investors

We’re now operating in a new environment, a new landscape where property is going up in price almost exponentially, and with stability.

In all likelihood 10% per year indefinitely isn’t a sustainable level, however, given the dynamics between supply and demand it’s unlikely that property will now fall back to the levels seen pre-pandemic.

It means that right now really is a great time to expand or start a portfolio of investment properties that will likely see your wealth increase markedly and relatively safely in comparison to other avenues such as stocks and shares.

Many of our clients are currently looking to expand and reaching out to seek our advice about hot areas of growth, so it’s always worth speaking to one of our team.

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