Property trends direct from the landlords mouth

As a landlord in the UK, I understand the trends and which ones are becoming popular – this is not only extremely important in my future as a landlord, but it is beneficial to the future of my properties, too.

Despite these trends not directly affecting landlords or property owners, the property market is constantly changing and there is always the possibility of change. Possessing an understanding of trends allows for insight and the prediction of anything that could affect the market, whether beneficial or not.

If you’re a homeowner or landlord, what follows is interesting and a simple way in understanding the ever-changing trends.

The most prominent trend we’ve seen over the past decade, and one that crops up a lot, is that the supply of housing doesn’t meet its demands. In fact, demand is on the rise and expected to peak over the next two years. The government recognised these trends early and put a project in place 8 years ago that will see nearly 250,000 homes erected by the end of 2016.

A further study showed me just how much demand there really is out there. I also found out that different locations and areas are taking different approaches to the demands – whilst home property architects in Worcester and Birmingham are focussing more on new rented properties, the capital is focussing more on what they have labelled, “affordable” homes. Although this has proven to be successful – thanks to relaxed regulations and tax concessions for builders –supply still isn’t matching demand.

The trend here is the commissioning of further housing projects.

The other interesting factor concerns inflation – although housing prices increase and fall with the market, an increase in inflation means today’s home prices will be less, relative to the inflation percentage. So if a house remains at £300,000 between 2014 and 2018 and inflation has risen, your money won’t be worth as much.

Noticing these trends allows you to judge the market and see it as a potential big investment, so the earlier you get on the property ladder and take note, the quicker it will pay you back.

Remember, whether you are like me and let properties, or you simply own a home, the market will always fluctuate. But as long as you try and recognise the trends, your investment will end up as a smart and financially beneficial move. If you have the capital, invest in property whilst you can – the housing demands are starting to be met.

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