Why Invest in Property in 2022?
Investing in property this year could be well on the agenda, and for all the right reasons. The property market was particularly buoyant last year, to say the least and now banks are gearing up for the momentum to pick up this year… so is now the time to consider becoming a landlord? According to Danielle Hale, chief economist, home sales are predicted to rise another 2.9% on top of 2021 highs making it another strong year in the property market’s history.
During 2021, buy-to-let investors borrowed a record £18 billion, according to UK Finance, which is an 83% increase on the previous year! Even better still, 34% of landlords within the UK are planning to buy at least one more property within the next 12 months, according to research from Shawbrook Bank. Currently, the UK property market is presenting significant opportunities, there is certainly a buzz in the air for today’s property investors….
So why might you want to join the investor’s band wagon this year?
It was by no accident that the Victorian expression ‘as safe as houses’ came around and is still being used to this day. The phrase means ‘secure; with no risk of failure’, and investing in property is certainly that. When people say that history repeats itself, they are most definitely not wrong, property has and always will continue to rise in value over a period of years, in our professional opinion. Since the end of the second world war, the overall trend for house prices has been upwards! During that period, there has been peaks and troughs, but the key to investing in property, is making sure that you do not have to sell at the wrong time. History supports the fact that the market will return, prices will rise to a figure greater than you paid over the long term.
Not only that, if the property that you are investing in is your primary residence, it can make for an effective forced saving-by investing in a property that will increase in value- at some point, when the time is right, you can sell the property, move to something of less value and take the balance out tax free… and everyone loves tax free money!
Another reason that you may look to join the band wagon of savvy investors in 2022, is because the current money markets are volatile. Without getting too deep into the politics side of things… the UK housing market is more stable, because it is less susceptible to changes around the world. Being no longer directly aligned to Europe, we have therefore more control over our interest rates.
Now investing in property is certainly not dull… there are several types of property investments to explore and thankfully we are the only agent in Harrogate that offers a fully comprehensive service, from commercial to residential and letting to auction, so you have certainly come to the right place! We have some great current opportunities with potential for significant yields, so please feel free to browse our website and if you would like any support on this topic, our door is always open and we will welcome a chat with you at any time. Happy investing!