It feels as though every time we turn around to read a new set of figures regarding the growth of the UK property market, we’re expecting to see something a bit more realistic, something a bit slower or maybe even some slightly damp news, however, it hasn’t appeared in a long time.
First there were some economic issues that meant there was a slowdown in the market, with sluggish growth in 2020, leading many to think prices could drop, followed by the pandemic.
We’ve written fairly extensively about the property market during and immediately after the pandemic, so there’s little reason to rake over that analysis again in detail, however, suffice to say things went a little crazy in the last 18 months or so in the UK property market, compounding a lot of expectations.
Post-pandemic, we are now having to contend with the current cost of living crisis as well as the fuel crisis and the war in Ukraine, without mentioning Brexit trade difficulties.
That has fed a fairly familiar narrative that the UK market is on the verge of disaster or, at the very least, a slow down or a dip.
But yet again, we appear to be at that familiar juncture of opening up the latest statistics to see a bustling market.
UK property market doing well
The latest activity data to come from estate agents, and reported by Julia Kowelle in the Guardian, shows a market that is in no mood to slow down.
As reported by Kowelle, ‘House price growth may well have peaked, but the ‘race for space’ that started during the Covid pandemic continues. Many people have embraced hybrid working and spend more time at home.
Estate agents say demand is far outstripping supply as many properties get snapped up within a week or two, while it takes new sellers longer to put their homes on the market. Agents talk of bidding wars, and would-be buyers sending personal letters with pictures of their children and pets to market themselves to sellers, in a desperate effort to secure a purchase.
About 40% of properties being marketed by Knight Frank across London are under offer at the moment, which is unusual. For the first time since the Covid pandemic struck, Middle Eastern buyers are returning’
These are encouraging statistics and figures for investors and buy-to-let landlords who might have been concerned that the market may be starting to slow down.
In fact, the majority of the figures and statistics that have been emerging in recent months point to a very robust and fundamentally sound market, especially in the rental sector.
The fundamental market conditions that supply by far outstrips demand is a constant, and there’s very little indication that it’s set to change any time soon. Renters competing for limited resources are continuing to drive up average rents which is providing a good secondary income on these investments.
If you’re interested in investing in property this year or in expanding your portfolio, take a look at our available properties here, or keep up to date the UK property market through our latest articles here!
