UK Inflation and Property Investment – Is Now The Right Time?
With UK inflation hitting a staggering 11% as of November 2022 and the cost of living continuing to soar, the big question on every investor’s lips right now is – is now the right time to invest in property?
Throughout periods of inflation, the property market is one that remains a safe investment, unlike other avenues such as stocks, shares and cryptocurrency. Property, of course, doesn’t remain immune to the effects of inflation and although the market will fluctuate, it does remain the most stable.
A combination of the COVID pandemic, Brexit and Russia’s invasion of Ukraine has all contributed. From higher energy prices, to supply chain shortages, to a rise in wages – all pushing up the costs of goods and services – all which lead to the rise..
While inflation does have an immediate effect on the profitability levels of a property, it does lead itself to becoming the ideal longer term investment. Buying into bricks and mortar with a view to the future, is a way to hedge against inflation, and trends will remain despite the threat of increased mortgage rates and will generate greater profits as the economy recovers, and throughout that recovery period, higher inflation also means higher rents.
It’s also worth mentioning that low-interest savings accounts are a definite no-go, which does add to the attraction of the stock market – albeit turbulent. However, this presents an increasingly risky strategy considering the complete unpredictability of the economy. Property investment has always outperformed the stock market for decades, and is typically seen as the safer long-term investment. Plus, with the supply-demand imbalance in the housing sector remaining at a constant, the market stays stable, and by taking a longer-term view, property is indeed the best and safest option for your next investment – so to answer the burning question ‘is now the right time to invest in property?’ it absolutely is!
Talk to our team today about how you can make better returns on your savings. Our experts can guide you through the investment process with our no obligation consultation. Call us on 01332 581 000 or contact us to find out more.