Are we in a house slide or climb?
The Office for National Statistics [ONS] announced last month that, according to their own measure, house prices fell slightly in November/December. What does this mean? And why is it ‘GREAT NEWS’ for us at Fossey Taylor and you as a property investor? Last month, the ONS reported that prices were at their highest since records began in 1968.However, in a surprise development, its house price index fell from 186 in October to 184.9 in November/December. If you adjust the figures to account for seasonal fluctuations, prices were flat between the months of August and September. But over the year as a whole, house prices continued to increase. Annual inflation rose from 3.7% in August to 3.8% in September.
Despite the monthly pause in prices, economists said the long-term trend was still upwards, and this means you really cannot afford to wait to buy your property assets. The market is moving now, and you need to get in now or miss the boat! This slight ‘dip’ if you can call it that, is probably your last chance to buy at 2002 prices!
[If you have ever said ‘I wish I had invested in property 10 years ago, this is your chance. We are buying houses at 2002 prices, that is literally half price property for sale]!
The ONS house price index, which is based on mortgage completions, gives a heavy weighting towards prices in London.
Annual house price inflation rates
Wales + 1.4%
Northern Ireland -1.5%
Across the UK regions, prices rose by 4.2% in England and 1.4% in Wales.
So Why is that ‘GREAT NEWS’ for Fossey Taylor and our investors?
Fossey Taylor are the investors Estate Agent, we don’t sell you a house to live in. We help you buy a house to invest in. Happily for us, these figures show that we are operating in the UK’s #1 BTL Hotspot [as borne out by the ONS figures], the East Midlands. We are regularly buying with a 20%+ discount to market value, in an area where you can still buy a house for £50-60,000 that rents for £500pcm [that is a natural 10% yield in an area that is set to EXPLODE in terms of values].
Fossey Taylor are a 1 stop shop for you as an investor, we find the property for you, help you buy it, renovate it if necessary and we then let and manage the property for you long term.
Check out what we do here
Not only are we investing in the UK’s #1 BTL hotspot, the same area is also set for some rapid growth in the next few years:
Earlier, the Royal Institution of Chartered Surveyors (Rics) called for urgent action to cope with the soaring demand for houses.
It said that demand was not being matched by supply.
And it warned that a lack of houses being put up for sale was proving problematic.
The housing market “won’t turn around overnight”, says Rics chief economist Simon Rubinsohn
“The amount of homes currently up for sale is still nowhere near enough to keep up with demand,” said Simon Rubinsohn, the chief economist of Rics.
“In order for the market to function correctly, this imbalance urgently needs to be addressed.” he said.
Learn more about our unique ethos and how we can help you here, or call us on 0115 824 84 84