Now is the time to invest in property

If you welcomed in 2015 thinking that this will be the year you buy your first, or a new, home, then you should consider doing so now.  Anne Mills, Residential Conveyancing Solicitor, explains why this is, and why Southampton is the best place to be looking to invest.

“Recent figures from the Bank of England show that a typical £200,000 mortgage is more than £100 a month less than 12 months ago, with costs predicted to continue to fall throughout the next 6 months of 2015,” begins Anne.  “There are many reasons for this, but mainly it’s due to the low loan and interest rates.” 

The Council of Mortgage Lenders also indicates that 2015 will continue to be a positive year for potential home owners.  “The CML recently stated that supply and demand for property will become more stable during 2015 as will housing prices,” states Anne.  The forecasted lower rates of inflation, along with the stamp duty reforms are likely to be reasons behind the change.  Mortgage rates are also falling as companies compete with each other, making it more attractive for potential buyers.” 

When buying a property, buyers should not only consider timing, but also location.  “Southampton is a fantastic city to invest in property,” explains Anne.  “This was proven in a survey conducted by HSBC in 2014 which had Southampton at the number 1 spot of the UK’s highest-yielding buy-to-let cities.  Typical rental yields of 8.73% were found in Southampton compared to other rates of under 3%.” 

Anne concludes, “If buyers needed more motivation to look to purchase their property now, new research from Rightmove and Oxford Economics has predicted that home prices in Southampton are due to rise by 42.9% over the next four years, compared to an average increase of 30% across the rest of the UK.” 

If you’re thinking of buying or selling your home and are looking for local, efficient solicitors, you can contact Anne or her team in Southampton on 02380 717439.

ENDS

This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice.  All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.