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Is Now A Good Time To Invest In Property



  •         Why you might want to wait
  •         The latest property price growth predictions
  •         How can you buy low and sell high with UK property?
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Should You Wait For House Prices To Go Down?

Buy low. Sell high. We’ve all heard that phrase. By finding an undervalued asset, you can hold onto it and re-sell it for a huge profit. Sounds simple right? But is this feasible in the UK housing market?

Yes and no. Like stocks, synonymous with the “buy low, sell high” tagline, UK house prices fluctuate. And there are opportunities to find prices slightly lower in one month than another.

However, these price drops have been fairly low in the past year. Prices dropped just four times in 2021, but this resulted in declines of around 1%.

Although, there was a rather sizeable drop recorded between June and July of around £10,000. However, this drop occurred after the initial stamp duty holiday ended.

When the savings ended, demand slightly dropped, leading to a reduction in house prices. The stamp duty holiday was a one-in-a-lifetime occurrence from Covid-19. As a result, it’s unlikely that we’ll see a similar drop again.

So, we know that drops in prices happen, but is it worth the wait? Well, if you don’t have the cash to hand to secure a mortgage, you’ll obviously need to wait. But if you’re waiting for tactical reasons hoping that prices may fall into your budget range, you may be waiting for quite a while.

Why invest in property? Read our complete guide to assist you with your property search.

House Price Predictions

The main reason we advise acting sooner rather than later to buy a home is the level of growth the UK market is set to see in the coming years.

Of course, predictions aren’t written in stone, and there’s no guarantee that they’ll actually come true. But if the last 20 years of property growth have proved anything, actual growth figures are likely to surpass these predictions.

According to industry experts JLL, the UK average price is expected to rise by an annual average of 4% between 2022 and 2026. These growth levels get even higher depending on where you look.

For instance, the Greater London area will see a 4.7% annual rise. Birmingham is set for a 4.9% growth. And the likes of Manchester, Leeds, and Liverpool will see average yearly growth rates of 4.7%, 4.2%, and 3.9%, respectively.

We suggest that these growth predictions may be conservative estimates, as prices in Liverpool increased by over 4% in the first three months of 2022 alone.

While there’ll be drops amidst these rises, there’s no way to predict when the right time to act would be. By waiting, you could end up spending thousands of pounds extra.

Want to learn more about property investment? View our complete guide.

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How Can You Buy Low and Sell High With UK Property?

Being opportunistic in the property market is different from the stock market. But while taking advantage of price drops isn’t recommended for real estate, there are better ways to buy low and sell high.

To do this, you have a few methods. The most obvious is buying a home in need of renovation, renovating it, and then selling it for a profit. (Otherwise known as house flipping). A lot can go wrong with this method, but it can be a lucrative strategy for short-term gains if you have the skills and knowledge.

However, if you want to take advantage of long-term growth, you should buy property in locations with high growth rates that remain affordable. Of course, this is easier said than done, but there are some obvious choices.

Want to learn more about property investment strategy? Read the complete guide.

Liverpool is one of the first places to come to mind. Billions are currently being spent developing the city, with major regeneration projects like Liverpool Waters transforming the city’s old docklands.

Prices here remain on the low end, falling below £180k for the city-wide average and lows of £90k depending on the postcode. Meanwhile, the city recorded the highest 12-month growth rate out of the UK’s major cities.

Whatever place you choose, make sure you consider the regeneration and investment in the area, as they are huge factors behind increasing demand and growth levels.

Just keep in mind that there’s no guarantee capital growth will occur, and it can be risky to invest solely for capital returns.

Want to learn more if you can afford an investment property? View our complete guide.

Considering Investing With A Partner?

Exploring the Potential: A Comprehensive Guide to Successfully Investing in Property Alongside a Trusted Partner for Mutual Gains.