A new report from Halifax shows that predictions of the housing market’s demise may have been premature.
The bank’s most recent House Price Index shows that annual house price growth was stable at 1.3% in Q4 2018, and that they actually grew by 2.2% in December. This is a far cry from negative reports which have emerged elsewhere and should reaffirm the optimism of property investors.
With an average house price of £229,729 at the end of the year, Halifax reports that is saw overall growth which matched its predictions from the beginning of the year, despite the uncertainty which arose. Moreover, Halifax predicts that 2019 is set to be another good year with average house prices growing up to a further 4% in the upcoming 12 months.
Russell Galley, managing director of Halifax, said: ‘The shortage of homes for sale and continuing low levels of housebuilding both constrain the supply of houses, and in turn support high prices, which will continue to inhibit demand in 2019.’
However, house price growth is only one important factor to consider when looking at investing in UK buy to let property – you must also look at rental income which is also slated to continue growing.
The Royal Institution of Chartered Surveyors (RICS) predicted last year that rental growth would accelerate in 2019 thanks to a falling supply of rental properties. Furthermore, RICS believes that these conditions will lead to overall rental growth of at last 15% by 2023 – which is great news for landlords looking to expand their portfolio of tenanted buy to let property in the near future.
For that reason, this is the perfect time to purchase a tenanted buy to let property. As opposed to purchasing an off-plan property, buying one which is both completed and tenanted offers the prospect of immediate income in a sector which industry experts believe is going to continue growing in the future.
Are you looking to purchase a UK buy to let property which is currently tenanted and generating a high NET yield? Have a look at our available properties and enquire today!
