Many people are worried about how property investment in the UK will pan out in 2019. Brexit is the main concern as nobody really knows what the fallout from this will be. In truth there has been a lot of uncertainty since the referendum in 2016 but despite this house prices have remained strong with a 2.2% increase in the average price at December 2018.
Most of the current projections for house prices in the UK are positive no matter what will happen after Brexit. This doesn’t mean that you can be complacent and that anything will turn a profit for you. You need to be aware of the market trends and be ready to jump when good opportunities come around.
Keep your eye on Property Hotspots
London and the South East have been stagnant for a while. It is important that you look further afield. For the foreseeable future the North West of England, the Midlands and Wales are property investment hotspots.
Cities like Birmingham, Manchester and Liverpool are all seeing rising demand and impressive house price increases. As an example of this Birmingham house prices are seeing growth double the UK average at around 5.6% every year.
A lot of people are now moving out of London and moving to the Midlands. They are still working in London because the rail links are good. The people relocating want to take advantage of the value that a city like Birmingham offers in the housing market.
It is not all doom and gloom for the capital. Many people still want to live there but they cannot afford to buy. As a result the buy to let market has held strong and in 2018 London led the way in the buy to let market with an increase of just under 5%.
How to succeed with UK Property Investment in 2019
You need to be prepared to look outside of your area for hotspots. It is not always easy to get acquainted with a new location but there are some great potential returns available in the areas we have discussed so research well and set up a network of contacts in your chosen region.
A disturbing statistic emerged at the end of 2018. This was about the number of property sales that fell through in England and Wales before completion. Nearly 50% of property sales fell through so you need to prepare for this unfortunate rising trend.
To be in the game in 2019 you need to have your finances in order. When deals come up you need access to money quickly so you can secure property purchases. The problem is that a lot of lenders are making the borrowing of funds more difficult because of the uncertainty around Brexit.
There are many specialist lenders and brokers out there who can help you. Make it your mission to discuss your plans with these people so that you have a better chance of raising the finance that you need quickly.
Finally you need to look long term for the best returns. The UK housing market is strong and has weathered storms like Brexit before. But there could be some short term fluctuations in the market that will affect those just looking to make short term gains.