UK property: Why history proves this could be the best time for you to buy

UK property: Why history proves this could be the best time for you to buy

Over the last 14 years, it was those investors who bought British real estate in 2009, following the global financial downturn, that have made the most profit when selling their asset. Will the same be said for those that buy in 2019?

Summary:

  • New research proves how UK property investors who bought immediately following the global financial recession have made the most money on their investment in recent years
  • These “brave” investors made £93,378 in profit when selling their property in 2018, more than buyers in any other year over the last 14 years
  • Amid the wider economic uncertainty of Brexit, will those investors that buy now in 2019 make some of the highest returns over the next decade?

Does this prove that buying UK property now could help you to achieve the highest long-term returns?

Brexit, and the immediate uncertainty of the UK’s withdrawal from the European Union, means that some investors may be waiting until a conclusion is reached before entering the property market. However, the subsequent fall in the pound has also led many other investors to take advantage of this currency opportunity by buying property now.

And new data suggests that it’s the latter group of investors that could be about to achieve the biggest levels of profit over the next few years.

Published by Savills, new research shows that, between 2004 and 2018, it was investors that bought UK property in 2009, amid the fallout of the global financial recession, that achieved the biggest returns when selling their property in 2018.

On average, those buying UK real estate in 2009 made £93,378 when selling their asset last year. It underlines the importance of purchasing with the right market conditions – and taking advantage of wider economic uncertainty.

“Over the last 15 years it really has made a difference as to when and where you bought in terms of the profits you’ve made. It reinforces that it’s not a one-size-fits-all market,” said Lucian Cook, Residential Research Director at Savills.

“The mortgage markets (in 2009) were locked up, but I also suspect some of this is about whether people were brave enough to do it and whether some people in 2009 had enough accumulated equity at that point to be able to make the move.”

The UK is currently suffering a housing shortage. Housebuilding is significantly below the 300,000 new homes the government outlines is required each year. Regardless of wider economic concerns, this does not alter this supply and demand imbalance in the UK’s property market.

At the time of publication, the pound is 11% cheaper against the US dollar than it was on June 22nd 2016 (the day before the EU referendum), and many investors are taking advantage to ensure they can secure an asset with the best value and long-term growth prospects.

Do you want to discuss your UK property investment options at this time? To speak to our expert consultants in one of our global offices, or receive free information via email, please click here.

Subscribe to our newsletter

Please enter your name and email address

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Select Property Group in relation to its property investment brands.

There was an error with your subscription. Please try again.
Thank you for subscribing. You will now be fully informed of all investment property news and insights.