The country’s housing market has long been subject to debate.
Since the crash, there’s been an undeniable struggle to cope with growing buyer demand and numerous government schemes have come and gone in recent times as they try to solve what’s been dubbed as a housing crisis.
And whilst investors may well be hesitant in this uncertain time, those who intend on staying around rather than coming out of the market are likely to see their profits grow.
This is according to the property investment platform, British Pearl, and their research which states that, over the last 50 years, property investments have made a profit 82.6% of the time.
There have only ever been five periods of time where house prices have dropped over those 50 years, showing a success rate of 89.1%, adjusted down to 82.6% after stamp duty, legal fees and interest rates were taken into account for property investors.
This all falls in favour of investors in the UK.
No matter how unstable you might think that the housing market is, the UK has a proven track record of returns, and the ongoing demand for housing means, when paired with careful property selection, the housing sector remains one of the most attractive investment markets.
The government is doing what it can to get buyers onto the property ladder, with the introduction of Help to Buy in 2013 and the tax changes to the buy-to-let market which has, unfortunately, made it harder for landlords to make a profit.
So, the news that playing the long game will benefit you if you’re an investor should come as good news. Especially at a time when stricter mortgage lending, rising interest rates and Brexit seem to have stunted house price growth.
To put it into context, if you were an investor in the pre-crash market circa 2007 and decided to exit following the recession, you wouldn’t have reaped the benefits of the current property price growth which has now comfortably exceeded the levels reached before the crash.
The housing market is renowned for rewarding those who ‘stick around’ in hard times, build upon their portfolios and do thorough research. As long as you have faith in the market and your investments, you will continue to reap the rewards.
If you’re unsure what to do with your property investment, or are considering entering the market, contact one of The Mortgage Hut’s specialist advisers and they will be able to walk you through your next steps.