It’s Time To Invest In Property

Changes to stamp duty mean there has never been a better time to buy in the UK.

Whether you are looking to invest in a property to live in, a property to let or a property for commercial purposes the stabilizing housing market and changes to stamp duty means there has never been a better time to invest in property in the UK.  

Here are some of the top reasons we think now's the time to take that next step (or perhaps your very first step) on to the UK property market.

1). Interest Rates remain low 

Changes to mortgage suitability criteria has made applying for a mortgage more difficult. If you are thinking of applying for a mortgage, be prepared to have your finances heavily scrutinized and inspected and for the process to take much longer than before 2014.
However, successful applicants will be rewarded with a return of some of the lowest ever fixed rate mortgages. HSBC kicked of the trend this year with a return to their 1.99% five year fixed mortgage and others are sure to follow. 

2). Home Values are expected to rise

House prices have been steadily on the rise since February 2015 and in July 2015 prices were up on average 4.6% compared to the previous year.

The housing crisis means the number of houses being built in the UK is lower than the demand for new homes. In 2012, only 135,000 homes were built in the UK – the lowest number since after the Second World War.

Around 240,000 new homes need to be built each year – a target which is continually missed.

To help solve the crisis, the government has channelled incentives and schemes aimed at new build homes – predominantly to help people get on to the property ladder.

3). Rent Prices are Increasing

Private renting prices have been on the rise for the past years but 2015 marks the year private renting prices stand at an all-time high. In most UK destinations, it is cheaper to have a mortgage than it is to rent through the private market.

Those with a high income are still in the circle of rent. – spending up to 50% of income on private rent means there is little opportunity to save.

Over a quarter of private rented tenants give up on the idea of owning a home.

4.) Stamp Duty Changes Add a 3% Surcharge

That's right, buy-to-let landlords and people interested in buying second homes will have to be a 3% surcharge on top of the stamp duty bands from April 2016.  

As The BBC News reports: "that means that for properties worth between £125,000 and £250,000, where the stamp duty is 2%, buy-to-let landlords will pay 5%".

For more on the latest incentives for new home buyers, in particular first time buyers, check out our recent guest post by property and interiors journalist Sharon Dale. For more on the latest changes set to impact the UK property market over the coming year check out our write up of Chancellor George Osborne's Autumn Statement.

And of course, if you're ready to take the plunge, browse the new build homes available right now!

Publish date: 18/09/2017