The UK property market has a long and established track record of consistant growth over several decades. Despite the recent economic downturn the British love affair with property shows no sign of abating: it is ingrained in the British psyche to want to own one’s own property.
It is this consistancy that makes the UK property market stand out against other property markets and indeed other investment classes. Very few other countries can rival the UK for the consistancy and strength of its growth. It’s true to say that there have been dips in the market, most notably in the late eighties to mid nineties and in 2008 but the long term trend is strongly upwards.
If chosen, financed and managed correctly a balanced property portfolio in the UK should offer the investor both cashflow and good capital growth.
The UK property market is currently in a period of recovery. In common with many other global property markets the market dipped sharply in 2008 in the wake of the global financial crisis.
The bottom of the market was reached in the second quarter of 2009 at which time the average house price in the UK had dipped by 16% (according to the Nationwide). During 2010 and 2011 the market maintained a steady rate of increase despite tough measures of austerity inhibiting growth in the rest of the economy. By the final quarter of 2011 the average UK residential house price had recovered by over 9% from it’s trough and remains on course toward it’s 2008 peak; we can only postulate that this steady increase builds toward a more stable market.
The local picture varies considerably, however. In London the property market is virtually back to where it was at its peak in 2008. Prices in prime London have soared once again driven by overseas investors attracted by the devalued Sterling and the relative cheap cost of borrowing. In wider London supply remains an issue and a rising population will inevitably lead to increased demand. Elsewhere in the UK the picture varies widely although the outlook for the UK residential market in general remains robust.
Bold Spirit Property – Growth, Performance & Management
Bold Spirit asset management can help you to extract the best performance from your existing property portfolio or help you to put a portfolio together. We can liase with estate agents, lettings agents and finance providers on your behalf to ensure that your portfolio is correctly geared to suit your investment strategy.
It may be that you have under-performing property assets or unsuitable finance. We can advise on the state of the market and whether it is a good time to hold, sell, conduct a rent review or re-finance.