With house prices increasing for the third consecutive month in May, the U.K. property market once again shows its remarkable resilience and growth. This ongoing trend is a strong indicator of the market’s stability and offers significant opportunities for property investors.
May’s annual increase in UK house prices followed eight months of falls.
Average UK house prices increased by 2.2% in the 12 months to May, up from 1.3% annual growth in April, the Office for National Statistics (ONS) said.
The consistent growth in house prices for three consecutive months represents a great moment of opportunity for property investors. The increase in pricing shows the consistency of the U.K. property market and the low risk that investing in it represents. With average UK house prices growing by 2.2% over the past year, investors can foresee rising property values, which will lead to potential gains.
ONS figures also indicated on Wednesday that UK inflation held steady in June. The rate of Consumer Prices Index (CPI) inflation remained unchanged at 2%.
The stability of the U.K. inflation rate is also a great sign for property investors. It means that while prices might still be rising, that growth remains at a rate that the Bank of England is comfortable with, after nearly three years of above-target inflation, making it less likely to implement significant interest rate hikes, which can keep mortgage rates more affordable for property buyers. Lower borrowing costs is also a factor stimulating further investment in the U.K. property market, contributing to sustained price growth and rental yields.
Richard Harrison, head of mortgages at Atom bank said: “The fact that the ONS has now reported three months of straight house price increases is a good indication of the growing confidence in the market.”
He added: “Eyes will now turn to the Bank of England, and when it will look to start reducing bank base rates, as reduced rates will also serve to boost buyer confidence. With inflation continuing to move in the right direction, it’s simply a question of when, not if.”
Average private rents increased by 8.6% in the 12 months to June, which was down from 8.7% in the year to May, and below the record-high annual rise of 9.2% in March. This increase just shows another window of opportunity in the dynamic U.K. property market. With rental prices continuing to rise, property owners can expect higher returns on their investments, ensuring a steady income for buy-to-let investors.
The U.K. property market keeps showing its resilience and potential for growth, always offering great opportunities for property investors to capitalize, with a steady inflation rate reinforcing the market’s stability. This makes it a great time for new and experienced investors to consider expanding their portfolios.
At Value Invest, we combine conventional investment acumen, with choice partnership with developers, we aim to deliver outstanding investment prospects for our investors. With a dedicated in-house team of 8 seasoned property professionals, we have experience working with investors from around the globe, at every stage of their investment journey.
If you are seeking income-generating Buy-to-Let properties, it’s important to stay informed about the latest trends and opportunities. At Value Invest, we offer fully managed property investment opportunities across the UK. Our expert team can provide you with valuable insights and guide you towards the most profitable investments in the current market.
Don’t miss out on the potential to build wealth and secure your financial future through property investment. Take advantage of the current market conditions and contact us today to find out more about our property investment opportunities.
Reach out to the experts at Value Invest Group, who can help you navigate current market conditions. We have exclusive access to income-generating properties and early investor incentives, making investing in property simple for investors based in the UK or overseas.
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