Where to invest money has become more complicated in recent times, however one investment which continues to bring in a good return is property, as prices continued to increase by an average of £15,000 throughout 2016, that’s £1,250 per month - making the average house in the UK worth £220,000 according to the ONS, Office for National Statistics.
Despite the increase in property prices first-time buyers still managed to secure more mortgages than they have done since 2007. New data published in the Daily Mail by the CML, Council of Mortgage Lenders stated that 338,000 first time buyer mortgages were approved in 2016, an increase of 8.3% compared to 2015, making it the highest level in ten years. Even though we have seen this bounce back from first time buyers, CML records also showed that first-time buyers are paying a higher price to buy their first time property, with buyers paying more to secure a property since records started in 1974.
Some property experts predicted a price drop after the vote to leave the EU in 2016, however property figures show otherwise, with property growth last year being more robust than in 2015. The largest increases in house prices were mainly experienced in England, where they increased by 7.7% over the year bringing the average value to £236,000.
Despite these positive figures, more people than ever are finding themselves in rented properties, whether it’s because of situations such as divorce, having to release assets, or not earning enough to support a mortgage so the need for more private rental properties still remains strong.
Buy to let investment can still bring in strong returns for those people looking to rent out property, if you are considering investing in a buy-to-let then please get in touch with one of our Finch and Co team on 020 8542 1193.