Property investment has been seen by many to be a safe haven for investment and with demand continuing to outstrip supply this is set to continue for the foreseeable future.
A combination of population increases, increasingly mobile populations, divorce rates and affordability combined with insufficient volume of new houses being built has resulted in more people renting.
The proportion of households occupied by private renters in England from 2000 to 2020 has more than doubled, from 10% of households in 2000 to 20.3 as of 2017. Around 4.44 million households were privately rented in England in 2020.
Data released in September 2018 by the Office of National Statistics (ONS) revealed the number of households in England is set to increase by 17% over the next 25 years with all regions in England expected to grow.
Historically, house prices have risen and fallen in cycles but the overall trend has been significantly up.
Government interference and Covid restrictions have put off many amateur landlords and the NRLA (National Residential Landlords Association) are reporting that buy to let investors are pulling out of the market and this is pushing up rents. Fortune favours the brave.
After the surprise 10% property price increases during the pandemic, pundits are predicting that there will be a smaller ‘correction’ than predicted and property prices in all regions will continue to increase for the foreseeable future.
Property investing should NOT be seen as a get rich quick scheme but there is something to be said in investing in ‘bricks and mortar’. Investors can either invest for yield or capital growth or a combination of these. Whether to purchase with cash or a mortgage, in your own name or through a company. All these questions need to be considered carefully. Think also about whether you are going to manage a property yourself or have a company manage it for you. Be aware of the legal requirements of being a landlord. Consider void periods and maintenance costs.
Then you can start to look at where to best invest to give you the returns you are hoping for. It is important to consider the costs and time of any refurbishment and to build this into your figures. If you are not living in the area, you will need a company you can trust to let, manage and maintain the property for you.
When it comes to property investment, think with your head and not your heart. We can help you through this maze if you are serious about investing in property in England.
Here at Woods, we provide a wide range of property investment services for our clients, including:
We can help you to identify a property in your area which meets demand for the requirements of the market.
Whether that is a property that is on certain bus route, near to local shops, has ample car parking or is nearby leisure facilities – we will perform the searches for you.
We can work directly with vendors or negotiate with estate agents on your behalf to ensure that you pay the best possible price for your property.
From releasing equity in existing property to gaining mortgages, we can help.
We can put you in touch with qualified mortgage brokers who can advise on individual situations as well as recommend appropriate financial advisors to assist you.
We can help you with all aspects of property management. Please visit our property management page for full details on how we can assist you.
When you are ready to sell your property, we can help you with a comprehensive exit strategy to realise any capital gains of the property.
We also have other investors that are on the look out for your property, so we would be well placed to sell your property for you.