Given the unprecedented economic fluctuation of the last few months, many investors are looking for a stable investment class – but is UK property a stable investment?
Things can feel like they’re moving quickly at the moment. As an example, just over 2 months ago the mini-budget was delivered by Kwasi Kwarteng, a completely different chancellor working underneath a completely different Prime Minister.
Rishi Sunak gave his first speech on 25th October, just over a month ago, announcing his new cabinet with the new chancellor Jeremy Hunt.
It feels absolutely ridiculous to think that these things only happened a matter of weeks ago. Yet, we’re now basking in the relative stability of a semi-competent government once again and the markets appear to have calmed too.
If you’re an investor or somebody that spends their time protecting wealth then these have been very stressful times indeed. In fact, it’s perhaps felt like nothing is safe at the current time.
Nothing, that is, apart from UK property. UK property remains a remarkably stable asset at a time when things have moved incredibly quickly, and not necessarily in the right direction.
As an example, crypto and stocks have both flatlined over the past 12 months as the world economy gets to grips with the enormous ramifications of borrowing during the pandemic and how it keeps hold of inflation.
Is UK property a stable investment?
UK property has, however, seen a remarkable rise of over 20% in prices since the start of the pandemic and comparing this to most stocks, shares, assets or cryptos is unprecedented growth.
Not just this, however, but rental prices are increasing quickly thanks to a lack of supply and an increase in demand.
Taking Manchester as an example rents have risen by 23.4% in just the last 12 months alone, according to Manchester Evening News.
It’s a similar story all over the country, with more renters coming into the market thanks to issues getting mortgages and interest rate increases, and the rental housing stock struggling badly to keep pace with this increase in demand.
Whilst there is an expectation that price growth may slow, it’s not likely to be particularly pronounced and realistically any drop or slight drop is still within the context of over 20% growth in the past few years.
It would be the case that rental increase growth is very much making up for any slow in price growth and as we mentioned earlier, the stability in the UK property market right now compared to other assets is remarkable.
Of course, there are always risks outside of anyone’s control, but, on the whole, is UK property a stable investment? We certainly think so – and we have some excellent investment opportunities on offer if you are looking to invest!
We have a number of managed, tenanted and HMO investments around the country that offer this level of stability whilst bringing in excellent rental incomes and large yields.
If investing in UK property is something that you’ve been considering then why not get in touch with us today?
