As the country heads into the autumn months, fears of recession, rising interest and mortgage rates, property price increases and how these will affect buyer interest in UK property investments will be the topics of conversation in the property market.
In fact the Royal Institution of Chartered Surveyors (RICS) is expecting property investments to level off over the next 12 months especially because of these very market conditions.
Survey Balances Note Decline From July to August
RICS states that its members are experiencing a decline in enquiries and sales in residential properties across the UK. This decline is mainly from first time buyers and new property investors. It is the lowest decline since April 2020 according to RICS.
The industry body states that its survey balance for sales expectations in the next 12 months fell to -45 in August. In July it was -36; both numbers being the lowest since 2012. According to RICS, these numbers reflect the growing concern that buyer interest in UK property investments may decline because of the property market issues.
Likewise, RICS’ survey balance for residential property prices also dropped from +62 in July to +53 in August. While this reflects the high demand for residential property investments over the lack of supply, RICS states that the strong momentum that the market experience early this year may slowly level off due to the market conditions.
Three Likely Reasons For Drop In UK Property Sales Last August
There are three likely reasons for the drop in properties sold last August. First, most Britons took a much-needed summer holiday away for the first time in 2 or 3 years.
Another reason may be property market issues: fear of recession, concerns over rising mortgage costs and interests rates, and worries over rising cost-of-living and energy.
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A third reason may be supply and demand. Housing demand across the UK is high. Curiously, despite concerns over market issues, interest in residential property is still relatively high among first-time buyers and property investors.
And while there has been a decline in enquiries, developers are taking advantage of the slowdown to complete residential projects and regeneration developments to meet the demand.
However, this building frenzy and high demand may still be kept in check by rising mortgage and interest rates and cost-of-living.
How Do We Keep Buyer Interest High? Engage Them About Off-Plan And New Build Property Investments
On the other hand, there is a way to keep that buyer interest in UK property investments high. The key is investing in off-plan and new build property investments.
Experienced property investors know that buying into off-plan and new build property investments is a great strategy, even with the current market conditions.
For new buyers and property investors, this be an opportunity they are looking for. Off-plan and new build property investments have low buyins but can potentially give them high capital growth and rental yields.
Book a chat or call our team today on 02079236100 to know why our property investment strategy focuses on off-plan and new build property investments. We can also help you plan and pick the strategy that is right for you and give you the confidence to invest with certainty in areas with good solid fundamentals.