Property prices are soaring

Property prices are soaring

There may be times wherein people maybe only be able to read about how well property is performing so many times before it becomes either a little suspicious or one may become numb to it, but as long as there is good news coming we’ll continue to report it!

So far this year we’ve gone from some pretty life changing news in the form of the pandemic and lockdowns through to, to borrow a Star Wars reference, a new hope. With pharmaceutical company Pfizer recently reporting that their COVID-19 vaccine appears to be at least 90% effective, focus has now shifted into how we escape the current restrictions we have been placed under.

Wistful conversations about how we all intend to spend next summer frolicking freely and mask-less must currently be tapered with the reality that we’re having to pull together to push through the final part of the race.

Cutting through some of the Prime Minister’s 18th century bugle metaphors, it’s clear that although this will almost certainly be a Christmas like no other, we’re approaching the final stretch now.

That being said, one of the few, if only, good economic news stories throughout the whole year has been the robust and often outstanding performance of UK property. Not just residential, we might add, but across many asset classes and in particular in Buy-To-Let.

The chancellor has certainly helped things along nicely, with his move to temporarily abolish stamp duty and economic stimulus, but it also must be considered that the simple act of having to spend the majority of your time in your house does somewhat focus your mind on your surroundings and a possible upgrade.

Prices are soaring

As with everything, the mainstream coverage of such performance is often balanced with warnings that this could only be temporary.

Whilst yes, as with anything, there should always be an element of caution when thinking about your investments – but when considering comparisons it should be noted that you can hold UK property up against more or less anything other investment and see a clear winner.

The Halifax have recently reported their latest figures in their House Price Index and, unsurprisingly, they’re pretty good. In October the average price of a home topped £250,000 for the first time, with prices up 7.5% compared with a year earlier. It was the strongest rate of annual growth since June 2016.

In a report by the Guardian, it was also noted that “Since March, Halifax said the cost of a typical detached home had soared by 6%, or £27,371 on average, with people forced to work from home during the pandemic, and with enough money to move house, looking to relocate. In stark contrast, the average price of a flat has increased by only 2%, or £2,833.”

Buoyancy turns into a boom?

By all accounts, it wouldn’t seem outrageous to already describe this as a boom, but erring on the side of caution it would be worth to see how this trend continues as the world attempts to return to normality with the full engines of the economy running full steam.

If we continue along the lines of comparisons, with the FTSE now looking at its best month since April off the back of the news of the vaccine, then it’s not unreasonable to suggest property may follow.

If you haven’t already been convinced to look into expanding your portfolio thus far, now may be the time to consider it.

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