Property in the UK has pretty much doubled in value since about 1066.
If you are involved in property then the answer to all the doom and gloom this month is to take a long-term view. In my mind that's 10 years or more.
The statistical facts are these:
There is a shortage of residential property in virtually all parts of the UK.
There are too many people seeking too few houses.
Due to the mortgage rules, not enough people can save up a deposit.
People who can't save up a deposit need to rent.
If rents go up as a result of the new Finance Act s.24 - people (tenants) will have to pay it. That makes it less likely they will ever save up their deposits.
Basic economics 101 means that if demand exceeds supply, then since the dawn of time (or 1066 whichever is the sooner!) prices rise. I think it's a pretty safe bet to say that house prices will rise in the next 10 years ahead of inflation, ahead of RPI and still make a good investment.
The best time to buy property was 20 years ago. The next best time is now.
If you are involved in property then the answer to all the doom and gloom this month is to take a long-term view. In my mind that's 10 years or more.
The statistical facts are these:
There is a shortage of residential property in virtually all parts of the UK.
There are too many people seeking too few houses.
Due to the mortgage rules, not enough people can save up a deposit.
People who can't save up a deposit need to rent.
If rents go up as a result of the new Finance Act s.24 - people (tenants) will have to pay it. That makes it less likely they will ever save up their deposits.
Basic economics 101 means that if demand exceeds supply, then since the dawn of time (or 1066 whichever is the sooner!) prices rise. I think it's a pretty safe bet to say that house prices will rise in the next 10 years ahead of inflation, ahead of RPI and still make a good investment.
The best time to buy property was 20 years ago. The next best time is now.
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