Press Release Summary: One of the factors in considerations about the UK property market in recent times has been the apparent conflict between the short-term and long-term perspectives. Until recently, the short-termist view looked to have some merit, with rapid house price rises enabling property to be bought and sold at a tidy profit.
Press Release Body: One of the factors in considerations about the UK property market in recent times has been the apparent conflict between the short-term and long-term perspectives. Until recently, the short-termist view looked to have some merit, with rapid house price rises enabling property to be bought and sold at a tidy profit.
Such a perspective is very distant now, with recent news of price falls as shown by the 2.5 per cent dip recorded by Halifax in March, or the fact that a majority of 78.5 per cent of surveyors polled by the Royal Institution of Charted Surveyors said prices fell rather than rising last month. (Scotland was an exception to the general rule with four per cent more surveyors reporting an increase in prices than a dip)
However, many existing investors will be looking at the market with a longer-term perspective, figuring that their purchases have had a good run in recent year and after weathering a storm will soon return to some seasons in the sun. But Brett Wood, managing director and owner of property investor advice firm YourPropertyClub.com has stated that for many, now is a good time for the long-term purchase to be made.
Emphasising that investors should \"always\" take a long-term view, he stated: \"Yes, prices may drop, but whatever you\'re buying now will be the lowest it will be for a while. It may drop down temporarily, but then it will have to quickly come back up.\"
This buy at the bottom of the market tactic may even attract new investors, he suggested, explaining that as part of the economic cycle there will be a slowdown, then factors such as interest rate cuts will help kick-start the economy and the property market will start to pick up again. It is then the investors who take the plunge now will enjoy the benefits.
\"At the moment we are seeing a lot of experienced investors jumping back in, and these are investors that have stayed out of the market for the last four years,\" he stated.
Of course, it may not be all as clear cut as that. For one thing, the impact of the credit crunch may having a disproportionate effect on the property market compared to the economy as a whole. While the slowdown in prices and restrictions in mortgage lending have been apparent, employment, listed by chief executive of the National Association of Estate Agents Peter Bolton King as one of the factors that can \"underpin\" a housing market, is as healthy as it has been since current records began in 1971.
The Office for National Statistics, released today, also revealed that the proportion of the working age population is now 74.9 per cent, the labour market survey measure of unemployment was down 39,000 in the three months to February and the number claiming unemployment benefits in March dropped by 1,200 to 794,300, the lowest level since 1975. All of these suggest there is quite a bit of underpinning going on.
In addition to this, yesterday\'s inflation figures, revealing that consumer prices index inflation was still at 2.5 per cent rather than rising as, Reuters reports, most analysts expected, may be an indicator that upward pressures are on the wane, a factor that could help facilitate more rate cuts.
Such factors as these may suggest all is not as bad as some would claim. But even so, those who buy into property now may, by taking a long-term view, be able to make good gains when the market does recover from its present trough, however long or deep it may be.
In today\'s world Property investment is an excellent investment option especially investment in UK
2022
