Property stock may be dwindling, but the gains to be made as prices continue to rise show that this is still an investment opportunity not to be missed.
House Prices Continue To Rise As Demand For Property Increases
Despite the apparent slowdown in the number of properties being sold in England and Wales, house prices are continuing to rise, according to figures recently released by the Land Registry. Although, at first glance, this may seem counter-intuitive to many, it is solid proof that property is one of the best investments an individual can make with their spare cash.
Property transactions slowing
The number of homes being placed on the market is at its lowest level since records began back in 1978. This drop is thought to be because the ageing population of homeowners are now re-prioritising their financial situations into helping their offspring get a decent head start in the property market themselves.
Parents are now fully aware of the difficulties faced by the younger generation when it comes to housing. Many are now opting to use their funds to help their children get on to the housing ladder rather than move themselves, as they may have done in the past.
Property improvements are also fast becoming a more popular option than moving home, and the number of homeowners undertaking work on their properties has skyrocketed in the last decade.
This drop off in property for sale is causing the market to react as supply dries up. Naturally, the fewer properties that there are on the market, the higher the property prices rise as demand becomes greater for those that do choose to sell and move on.
With demand rapidly outstripping supply, house prices are rising once again at an extraordinary rate. As of July, the Land Registry stated that across England and Wales, house prices have risen by an astonishing 4.6 per cent for the first half of this year.
Eastern England and, predictably, London, have seen the greatest gains, with prices rising by 2.8 per cent in the East of England in July alone. Reading, in Berkshire, has seen a leap of 13.6 per cent for the year. All of which shows the incredible investment opportunities that remain, even in one of the slowest markets ever seen.
The trend looks set to continue
According to many experts in the property market the current trend looks set to continue as homeowners opt to stay put rather than take the risk of selling their home only to find that they cannot find anywhere to buy.
Chains are being put under increasing pressure and prices are rising at such a rate that many sellers are withdrawing properties and hoping to place them on the market again when the gains plateau.
While it remains a struggle for first time buyers, the market is clearly an extremely attractive one for investors. As the demand increases, so too do the property prices, and rental accommodation also becomes more and more attractive to those who would otherwise had opted to buy.
Investing in property is still a great way to diversify your overall investment portfolio, and for those who may be looking to enter into the property market as an investor for the first time, doing so now could prove to be very lucrative indeed.
Article Courtesy of: Jonathan Stephens, Surrenden Property Investment