
Resilience
Property has, for many years, delivered a steady return on investment. And judging by the forecasts, this looks set to continue.
While the stock market has gone down (the Dow Jones by 5% and the FTSE 100 by 1.9%*), property prices have gone up.
Safety
Knight Frank released a report last month stating that the UK property market has become a safe haven for investors, albeit not by design but by default.
It said that economic instability and uncertainty elsewhere in the world, partly caused by Trump’s see-sawing position on tariffs and the jitters caused on the markets, have prompted overseas investors to look to the UK to park their money.
Interest rates and mortgages
So far this year, the Bank of England’s Monetary Policy Committee has cut base rates twice: first in February and then earlier this month.
And the mood music suggests that further cuts could be on the way, with forecasters predicting the base rate will hit 3.75% by the end of 2025.
Obviously, these are only projections and cuts are not set in stone, but it’s fair to say the outlook is positive.
Long-term rental growth
Those looking to enjoy the dual returns associated with owning a buy-to-let – rental income and capital appreciation – will be pleased to know that demand for rental properties remains strong.
So, if you’re looking to make quick returns and are willing to push the envelope, then more speculative investment opportunities may be right for you.
But if you’re after a safe, long-term investment – especially as uncertainty still hovers over the tariff issue – then property can certainly deliver (providing you buy wisely, of course).
If you’re a landlord looking to expand your portfolio or a homeowner looking to size up or down, contact us!
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