Well I don’t think I’ve seen an odder property market than we have now! I’ve seen ups, downs and no movement but I’ve never seen quite the extreme schizophrenia that we have at the moment! And of course, in the current market it’s never been more important to do your due diligence and check take A RIDE and UPWARDS and all the other stuff we teach at Fielding Financial.
If a Martian landed on earth today and asked about the UK property market we could say: well it’s flat – or perhaps we would more likely say; there’s slow growth. Overall growth rates across the UK are in the single figures somewhere: now that they’ve shaken the dust and anomalies out of the 2016 figures the annual growth last year appears to have been about 5%, and predictions are that 2017 is going to be similar (although my best guess for the country as a whole will be slightly lower than that due to the election coming bang in the middle of the peak house transaction season).
We could also say to our Martian that property prices had fallen drastically in certain areas: the prices in Northern Ireland are still only about half what they were in 2007: and prime London locations (Chelsea, Kensington, Knightsbridge areas) have seen a 13.2% drop since the end of 2014. However we can counter that with amazing price increases in the ‘outer ring of our London doughnut’, where last years figures are suggesting a 15% growth in areas like Croydon and Havering: and going slightly further out there were some big rises: Luton (19.4%) and Medway (13%). I could go on: Prices in Wales have dropped: Scotland is up: Birmingham and the north in general have experienced massive increases in rents; Bristol and that area of the south west is booming.
What we DO know for certain is that all these price movements, up or down, are created by a set of reasons, which start from the simple demand and supply equation we teach at our introductory training events: rents are driven by higher demand, property prices are moved by demand and then communications (the Up and Coming in UPWARDS) so the HS2 rail development and the Northern Powerhouse initiative have created a massive increase in areas such as Manchester.
Interestingly this bodes well for us as professional investors: no longer will an amateur investor be able to plonk a pin in the map and chose an investment property more or less at random and probably be OK: now is the time of the professional investor: where research is needed, application of market intelligence and an awareness of the bigger economic issues form an essential part of a property investors purchasing criteria.
Like the extremes in the property market itself, the gap between an amateur investor and a professional one is getting wider every day:
HOORAY for us at the Fielding Financial family!!!! There’s some great deals out there at the moment – so follow our formulas, talk to your mentor and get going.