How do you see future performance for the UK property market?

[Nicholas Wallwork]

It's interesting to keep this thread going to see how views change in line with the market.

Today (Dec 2015) the market is strong and underlying demand is still there. Even with the new starter homes building goal by the uk government I don't think they will realistically hit these targets. As demand is also increasing the home deficit will remain or widen keeping the market buoyant.

Invest for yield and not capital growth to help you weather any property market storm.

 

[Judith Beilby]

Interesting to see the effect that the new BTL stamp duty will have on prices. I believe that true investors will benefit as the casual investor will be put off by the spin and forget to dig deep into the figures. At the end of the day if a property will return a healthy rental or resale price then the stamp duty will be less of an issue.

 

[nmb]

Sometimes I think that governments have no real incentive to increase the new build numbers as the constant rise in property prices can create a feelgood factor. If the government was to increase new build numbers significantly this would reduce the squeeze on property prices in some of the employment hotspots of the UK.

 

[PropEx]

Personally, I reckon the bubble is going to burst, I can't see how it can go on for too much longer. With the new buy to let tax laws coming in some landlords will need to sell their properties, which will make the market more liquid which in turn will bring down property prices.

 

[Judith Beilby]

I think we can forget about the properties from UK for short term. May be unlikely to appreciate to a level that any investor will feel exciting about. For medium and long term, it can be still a viable investment option.

However, UK student accommodation can be quite interesting as such rental demand especially near good UK universities is always very high...Recently, i did a research about Sheffield area and knowing that for every four students, three are desperate to look for nearby student accommodation near Sheffield university.

I am interested to hear your research on Sheffield. I have good contacts with a high quality student developer in the city and we have worked with him to sell a number of his sites. Purchase prices are competitive and rental yields are excellent. Please feel free to get in touch and I can send you details.

As a note, I would certainly suggest that any student investments are made in sites which have dual use as student and residential as this widens the resale market to the post grad/owner occupier market. Exit strategy is much stronger.

I look forward to hearing from you.

 

[Judith Beilby]

So many factors indicate the ongoing health of the UK property market - if you choose the right place.

Most convincing is taking a historical perspective: if you look at property costs over the last 1000 years, the only time they have been lower at the end of a 10-year cycle is during the Black Death. When fewer people simply meant a lower demand for housing.

Add to that that we are an economically stable country where English is spoken and where foreigners are (up to a point!) welcome, and the lack of extreme weather. Looks like we won 1st prize in the lottery of life ...

My ongoing view is that no matter where you live in the UK there will be a good investment within 30 mins of your house. Do your research and make the cash flow rather than the potential future capital growth your priority. In this way no matter what the market throws at you by way of price fluctuation the profitability of the asset will remain strong and you will have less chance of being forced into a position to sell to cut negative equity.

I would always stress test at 5% interest rate repayments, anything lower than that is a bonus.

 

[Ricky Bhurji]

The spectacular collapse of oil prices should allow for wages to be increased and will no doubt feed through into consumer spending - this could even be the big bounce back of the retail sector.

 

[PropEx]

Are you meaning that the oil collapse will push wages up in general or in the oil sector? I'm not sure if I understand the correlation between the oil collapse and wages. I don't think wages increased when the oil price was the same as it is now in the early 2000s and before.

 

[Ben Kinder]

While I understand that each opportunity has it's own benefits and pitfalls. Generally, what kind of property would the forum members suggest is the best investment - new build or restoration projects?

 

[Veronica]

With new builds it takes time for the value to increase. For a quick profit buying a property needing some attention is a much quicker way to get a profit.
I often watch homes under the hammer and people seem to do very well with tired properties that need tarting up.

 

[Longterminvestor]

I agree Veronica - people are lazy and don't want to spend time "doing up" a property so if someone else can do that for them, many are happy to pay up to rent or buy after the hard work has been done.

 

[Tanya Daye]

UK property market and landlord gain really well because of property management, virtual property assistant, property administrator and so many property related software and others services hire by landlord or property investor.

 

[PostBrexitInvestor]

Firstly London is a market/economy in its own right, often performing very differently from the rest of the UK.

There is also a clear divide between the South East of England and the rest of the UK. Scotland has its own issues with areas being hit by the low oil price (Aberdeen for example) and the whole country is continuously gripped by the threat of yet another indy referendum.

 

[Mike Wilson]

The UK property market is in effect two very separate markets with London and the rest of the UK often showing different levels of performance. We would be very interested to learn your opinion of the UK market at the moment and the prospects for the medium to long term.

I think, the same situation is all over the world. The most important and development properties are expensive and little is not that much.

 

[Longterminvestor]

Just a few months ago the UK seemed to have at least a little control over Brexit negotiations but now the situation seems to be changing with the EU dictating everything, even the Irish border situation!

At best, investment in the UK business sector will be slow or be put on hold, at worst, well who knows. Personally I think a deal will be done to the benefit of all parties at the last minute but it is getting awfully fraught. Surely short term business in the UK property sector will fall?

 

[Mike Wilson]

Can price could be dropped in future in investment in London Property?