Today we bring you a video from “The Investing Show” which provides insight into the UK property market. The video is hosted by thisismoney.co.uk editor Simon Lambert. On the show are the Head of Equities at Hargreaves Lansdown, Richard Hunter, Tip TV CEO, Nick Batsford and eayproperty.com CEO, Rob Ellice.
Ellice states that yields for properties outside of London are improving and he provides useful comment on how the government’s taxation changes and their push to professionalise the market will affect property investors. He believes that this is not all bad news and will release some liquidity into the market.
The video also examines agency fees and how geared money can be dangerous but legislation will provide a positive element. They discuss two key points that investors should take note of and these are the longer term aspects of investment and the possibility of a mortgage rate hike. Also voids should be avoided and incentives for tenants to stay longer term provided. They predict that it will be another 12 months or so before a fresh supply hits the UK property market.
The future of the UK property market was discussed and Ellice believes that if London is removed from the equation there will be a strong market for the next 18 months. There is still a large demand and little supply and while this remains to be the case the market will be strong. There could be a mortgage rate rise but even if there is the rates are likely to be low.
So overall it is a positive outlook. We believe this as well and will be continuing with our property investments for the foreseeable future. If you would like to join us and leverage our expertise in property investment, then please contact us here for a free, no obligation consultation.
Here is the video. It is 25 minutes long but well worth a watch.