When you’re considering whether to invest in property<\/a>, there are multiple factors to take into account that are likely to determine the success of your decision. From house price trends to rental market demand, and interest rates to affordability ratios, the figures need to add up to make it worthwhile.<\/p>\n But the reason UK bricks and mortar has long since been seen as a resilient and dependable asset class by investors is its long-term durability. Despite wider economic turbulence, prices continue to climb when you zoom out of the monthly fluctuations, and the supply and demand<\/a> imbalance always feeds into the market’s long-term performance.<\/p>\n A certain level of confidence in the sector is needed to invest in property, and recent research has revealed this has increased<\/a> over recent months due to a combination of factors.<\/p>\n Looking at historical as well as more recent figures reveals huge levels of house price growth in the UK housing market, despite any short-term stalls. Over the past five years, average property prices have increased by 20%,<\/a> representing significant capital appreciation for those who chose to invest in property in 2020.<\/p>\n Honing in on the top-performing locations, research from Zoopla shows that the standout house price growth was seen in the North West<\/a>, which has rapidly become one of the UK’s most popular regions to invest in property in recent years. There, 12% of homes increased in value by a huge 50% or more over the past five years.<\/p>\n Looking more closely, and delving deeper into history, house prices in Manchester have increased by a huge 517% over the past 25 years, from just \u00a341,625 in 2000 to \u00a3257,000 now, according to Office for National Statistics<\/a> figures.<\/p>\n Forecasts point towards even more growth in the coming five years, which are a strong indicator that now is a good time to invest in property. For example, Knight Frank predicts total five-year price growth of 22.8%, outperforming the last five year’s figures.<\/p>\n Higher mortgage rates which began to kick in in 2022 have played a big part in slowing down growth in the UK property market – although the ongoing shortage of supply versus demand has held the sector up, meaning prices have continued to climb.<\/p>\n When borrowing costs go up, along with an increase in the cost of living, affordability tends to fall, and this impacts market confidence. This is particularly the case in the more expensive parts of the country, with those looking to invest in property increasingly switching their focus to locations with better value for money.<\/p>\n But over the course of this year, the Bank of England has brought down the base rate<\/a> and lenders have responded by offering more competitive mortgage deals. Mortgage rates are already much cheaper than they were this time last year, and with product numbers at record highs, buyers as well as property investors have been re-entering the market.<\/p>\n Analysts are predicting more interest rate cuts over the course of this year and next year, which will only boost prospects and improve the outlook for those who invest in property now.<\/p>\n Recent analysis from Moneyfacts revealed that British savers have actually lost money<\/a> in real terms since 2020. The research found that \u00a31 saved in 2020 is actually worth 11p less now (just 89p) in real terms, because average saving rates have not kept up with inflation.<\/p>\n By contrast, as the figures above show, the housing market has accelerated over the past five years with strong capital appreciation, particularly in the North of England.<\/p>\n With interest rates likely to continue to fall, this will further tip the balance for those debating whether to put their money in savings or invest in property. Of course, there are other modes of investment, such as stocks and shares, but property can offer less volatility – and cheaper borrowing costs on the horizon.<\/p>\n When looking to invest in property, you should take into account the likely costs versus the potential profits you could make, and this will vary widely depending on property type, location, and other factors.<\/p>\n According to recent research from TDS Charitable Foundation, buy-to-let landlord profits have actually risen<\/a> over the past year, despite higher costs, thanks to stronger rental yields and a resurgence in house price growth, along with extremely high rental demand in many parts of the country.<\/p>\n The report revealed that in 2025 so far, almost two in five landlords (37%) said their pre-tax income was more than \u00a3100,000, which is up from 20% who reported this income in the same report in 2024.<\/p>\n If you’re looking to invest in property in the UK, get in touch with BuyAssociation<\/a> today to find out about our current and upcoming opportunities in some of the UK’s most profitable locations.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" The UK housing market continues to evolve and adapt to the economic landscape. Could now be an ideal time to invest in property? When you’re considering whether to invest in property, there are multiple factors to take into account that are likely to determine the success of your decision. From house price trends to rental… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":5023551,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[6,2,4,59],"tags":[668,17],"class_list":["post-6106153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk-housing-market","category-buy-to-let-landlords","category-investment","category-trending-news","tag-invest","tag-property-investment"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6106153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=6106153"}],"version-history":[{"count":12,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6106153\/revisions"}],"predecessor-version":[{"id":6106165,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6106153\/revisions\/6106165"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/5023551"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=6106153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=6106153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=6106153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Strong house price growth<\/h3>\n
Improving mortgage rates<\/h3>\n
Invest in property, not savings<\/h3>\n
Profits are rising<\/h3>\n