As we embark on the new year ahead, investing in property may be one of your prospective goals. Despite the recent instability COVID-19 has presented us, the London property market is thriving. But with the changing times, it is important to understand the current property market trends before investing.
By understanding these trends, you can make an informed decision as to whether your investment will be beneficial for you and your desired goals. Here are a few key things to consider:
Increase in property prices
It has been forecast that in 2022, property prices in London will increase up to an astounding 10%, most notably in Notting Hill, Chelsea, and Kensington.
Growth in rental prices
With the increase in property prices and the subsequent shortage of available rentals, it is expected that rental prices for 2022 will heighten. It is predicted that in central London and other prime locations, the growth of rental prices will rise by 5% this year.
Rentals in demand
To some degree, things are beginning to return to normal, and therefore companies are asking their staff to return to the office. The demand for rentals for working individuals will therefore be on the rise.
Energy-efficient homes
It is predicted that energy costs in the UK will rise and therefore as a property investor, it will be beneficial to look for a property that is energy efficient, and where your cost of energy and running of the property will be lower.
The ‘Race for Space’
On the other hand, some companies have realised that remote working is possible and encourage their staff to work from home. This has led to many homeowners/renters realising that their current living situations don’t meet their new requirements. Buyers are now looking for properties that have more space which can allow for a possible home office.
International travel
As we expect international travel to start picking up again, the demand for short-term rentals will grow. Expats and other business personnel may need to be on location for a few months at a time and therefore would rather rent than have the commitment of purchasing a property.
Buy-to-let properties are booming
In recent years more people are looking for long-term rentals, this trend is expected to grow in 2022. Now is therefore a good time to invest in a buy-to-let property.
If you are confident and well-informed, now may be the perfect time for you to invest and create the opportunity for a passive income. It is however also important that you find a property that meets all of your requirements before investing. Quick decisions can lead to costly mistakes later down the line.