Property investors have been urged to take advantage of the start of the new property cycle by Adan Challis head of UK research and strategy at property consultancy JLL.
“The best real estate decisions over this new property cycle will be made in the next 12 months. Failure to act will mean missing the market turn and the best of the value that is emerging.”
This sentiment is echoes by property juggernauts such as Hamptons, JLL and Savills who all now expected residential house prices to return to strong levels of growth over the next 5 years. Savills research suggests the North West and Yorkshire region will significantly out perform the national average by seeing almost 30% house price growth by 2029.
For someone buying a £200,000 property with 75% LTV mortgage finance, a 30% uplift in price would see them turn their initial £50,000 plus buying costs into £110,000 more than a 100% return. This doesn’t even take into account the rental profits over those 5 years.
With rents expected to rise by almost 20% over this period it is clear why analysts say we are at the start of a new property cycle. A fantastic time for those that an afford to add a property to their investment portfolio.
