Has the housing market peaked?
The pandemic changed where and how we spend our money, and the housing market is a true reflection of this. While we experienced a boom when lockdown eased, are we now seeing things starting to shift? We expected the housing market to slump when the tax break ended, but statistics show this isn’t the case. There is just a shift in what people are buying – although there has been an overall decline, smaller properties are experiencing record highs. Two- and three-bedroom semi-detached houses have been snapped up the quickest this year. However, there are no signs of imminent price falls. This is because the race for space, low mortgage rates, and the return of first-time buyers are continuing to breathe life into the market.
Shortage of properties
The tax break caused a huge boom in the property market, and the knock-on effect is now a shortage of properties available. Agents can’t get houses on the market quick enough and because of this, agent rates are starting to compete. Although the market appears to be cooling, Halifax’s house price index for August revealed house prices reached a record high in August. This was an increase of 0.7% in July, topping the previous peak in May.
What does this mean for investors?
Is it the right time to invest in property? As one of the most popular markets in the world, property investment in the UK remains a clear opportunity to build long-term returns. And property forecasts are suggesting the UK could see prices grow by 21.5% by 2025. This means UK investing continues to be a reliable channel for maximising returns with low-interest rates and high demand.
If you’re a property investor looking for support, then don’t hesitate to contact us today. We have a team with over 20 years property experience within the Norfolk property market waiting to take your call.