Buy To Let Property Increase Worry

Buy To Let Property Increase Worry.

Halifax has released its latest House Price Index showing that property prices in January 2016 with nearly 10% higher than a year ago. The average house price in the UK is now £212,430.

This will no doubt keep property owners and buy to let landlords happy but it makes it ever more difficult for people to get on the property ladder.

Whilst many were predicting a property slowdown with price increases of between inflation and up to 5% per annum, the heat in the market has been reignited by the introduction of 3% higher stamp duty charges for buy to let properties from April. Prospective landlords are desperate to complete on property purchases before the end of that action.

In addition, rates have also hit record highs further pushing demand for investment property.

Comment

We believe that there will be a slowdown in the property market and you should prepare in the next couple of years for a property recession with negative equity coming back for people who buy at the top end of the market.

Long-term some forecasters, including ourselves, are predicting the average property in the UK to hit the £1 million mark in the next 15 to 20 years. This may seem “pie in the sky” to many people but you must appreciate that the population of the UK is set to expand by another 10 million people in the next 10 to 15 years and the population of London alone will expand by another 1 million people in the next five years. Demand will exceed supply which means prices will rise.