Investment Property, Invest Wisely but Invest Soon .
In great part due to the Treasury’s Help-To-Buy programme, home prices have been on the rise of late in the UK. There is pressure from a number of economists and financial industry experts for the government to drop the Help-To-Buy programme, as there are fears that it will cause a new housing bubble unless available property catches up with increasing demand. It is unlikely, however, that the government will respond to this pressure, and thus it seems that home prices will only continue to rise throughout the length of the initiative.
Summer is typically a slower season for home purchases, however, and because of this August has seen a brief downturn in the real estate market. Sales are down just a bit this month, which has a minor levelling effect on the average price of homes in the UK. Fall, however, tends to be a very busy season for real estate, and this coupled with the growing shortage of available homes will see the market take off in the months to come. The second phase of Help-To-Buy is slated to go into effect in early 2014, which will increase even further the demand for housing in the UK.
This is why right now is the ideal time to invest in real estate. It seems unlikely there will be a building surge that will be able to meet escalating demand for real estate, so while the summer lull is still in effect, those looking to invest in real estate should capitalise. Home prices are up about 5.5% in aggregate this year, while available housing has increased by a mere 0.2 percent. Those looking to take advantage of this opportune market should invest now, but they should not do so arbitrarily.