In order to claw back the current deficit in house building that has built up over the last 20 years, we need to be building around 300,000 homes per year. Unfortunately, over the past decade, just over 100,000 houses have been built on average per year. Given the current circumstances and ongoing global battle with COVID-19, I expect those numbers to drop significantly over the next year or two, further exacerbating the situation.
This has a clear knock-on effect for the housing market in a number of ways. The most obvious being that the further constriction of supply will create an upwards pressure on house prices, and this will be more acute in certain areas and for certain types of property. Additionally with the drop-off in supply and the tightening of mortgage liquidity, we will likely also see rises in rental values across many parts of the UK as more people delay buying and choose to remain in the private rental sector instead.
Some landlords may choose to leave the sector altogether owing to the current market instability. This will result in a further reduction in the availability of rental stock, leading to inevitable rent increases and profitability for those landlords that have bought high-yielding investments in the right areas.
With record-low interest rates, volatility in other types of investments such as the stock market, and the clear fundamentals of the housing market remaining unchanged (insufficient housing to meet the current demand with a predicted 5% growth in the population over the coming decade), now could be the time to strike for savvy investors.
As ever, Assetz Property and our expert team can advise you on the most lucrative opportunities to take full advantage of the current market turbulence so that you secure the best possible deals on the right property for stable and secure long-term income, in a ripe and opportune buy-to-let market.
Our knowledgeable team have been here before. For example, successfully guiding investors through previous periods of market uncertainty, such as the 2007-08 global recession.
Risk Warning and Disclaimer:
The price of property can go down as well as up. Historic performance should not be taken as a guarantee of future performance. Geared property investment with mortgages can increase risk of losing money as well as increasing the possible gains. Mortgage products referred to in the website can be withdrawn by the lender or have rates or other terms changed without notice and reference to any products does not imply they are certain to be available in the future. Mortgages referred to may also have certain applicant restrictions and are for indicative purposes only although reasonable endeavours have been used to ensure that they are available at the time of publication and are applicable to a significant number of our purchasers. This site is for information purposes only and nothing on this site should be taken as definitive investment advice for your particular situation without you seeking additional guidance directly from ourselves or from other finance and property professionals. Property particulars on this site do not form part of an offer or contract. The developer and Assetz Property Ltd, whilst endeavouring to ensure complete accuracy in these property particulars, cannot accept liability for any errors. Valuations of property or indicated rents achievable are either estimated or derived from valuations and/or comparables and can change and should not be relied upon without your own additional valuation and research, but we have carried out reasonable endeavours to achieve accurate indications for these figures. All descriptions, dimensions, areas, reference to condition and, if necessary, permissions for use and occupation and their details, are given in good faith as provided by the developer and are believed to be correct. However, these are subject to change, especially, but not wholly, relating to any property that is off-plan or not yet complete. Any intending purchaser should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to their accuracy. The onus is on each individual investor to undertake their own due diligence, enquiries and inspections. Where shown, net yields are calculated as rental income less expected service charges less expected ground rent as a percentage of the property price. No void periods, optional letting agent costs, repairs or other costs are deducted. Our standard Terms and Conditions of Sale will apply. E. & O. E.