3 reasons why you should invest in UK property market now

Considering UK property investment as a Dubai/UAE expat? This blog post is for you! Well, the UK property market so far in 2024 has been a very interesting one. While the prices have not shot through the roof, many trends indicate that a boom is around the corner. With that in mind, let's take a look at some of the key things that could contribute to your decision to buy now or to wait.

This blog post dives into 3 compelling reasons why now might be the perfect time to invest in UK real estate. We'll explore the key factors shaping the current market landscape. However, for a truly successful investment journey, partnering with trusted real estate brokers in Dubai like Exclusive Links is crucial.

1. The Rent vs. Buy Calculus: A New Equation
   
   The landscape of renting versus buying has undergone a dramatic shift. Rents have seen a sharp rise throughout the UK, particularly in London. Average UK rents rose by 9% in the year to February and 10.6% in London. This has led many renters to re-evaluate their options. For some, even with increased mortgage rates, buying a property might be a more strategic long-term investment compared to the ever-growing cost of rent. This shift in perspective is reflected in a surge in buyer activity.
   
   
2. Interest rates and inflation: rays of sunshine
   
   While economic forecasts suggest a rosier picture — inflation is seen falling below 2 percent by April and then reaching 1 percent by the end of next year — the reality is anything but clear. Such optimism could see the Bank of England cut interest rates as soon as the summer, sliding them down to about 3% by 2025. The current low interest rates would lead to cheaper mortgages and therefore make home ownership more within reach for more people.
   
   
3. The Supply Squeeze: Recipe for Price Rise
   
   Of course, one of the biggest worries in this market is the incredibly low number of homes for sale. There are a couple of reasons behind this shortfall. Number of new housing approvals has slumped, so too has the number of planning permissions granted. Added to this is the debilitating effect of policy uncertainty with more than 20% pulling the plug on their local plans for housing provision. More buyer demand and fewer properties for sale will increase the property prices as stated by the law of supply and demand.

Intrigued by the potential of the UK market but have your sights set on international property ventures? Learn more about international property investment opportunities to discover a world of exciting opportunities across the globe. 

Although the window might be closing on historically low prices, there are still some out there to be had. A soaring rent, market interest rates that could soon be halved, and tight housing supply all suggest that house prices will ultimately get larger over the next few months. 

It is essential to do all possible research and have careful financial planning and a long term vision to invest in the UK property market. Connect with Exclusive Links today to understand the advantages and disadvantages and decide what you want that best suits your financial goals and personal circumstances.

This blog post is based on Why investors have six months to buy UK property before prices start to rise? This is the repurposed version with permission from the owner and made modifications to fit the style and audience of our blog.