UK property buyers are in panic mode

It’s a tough market right now.

The supply of properties in the UK is so limited that buyers are going into ‘panic mode’.

According to a consultancy TwentyCi, there were 350,980 properties for sale in the UK at the beginning of 2022, 36% fewer than at the beginning of 2020.

That is quite a dramatic difference.

While supply is limited, demand has never been higher. It took less than 30 days for a property to sell in Q4 2021, which is less than half the time it took in Q1 2019 (60 days).

… but that doesn’t show the full picture.

While the average number of properties on the market has gone down significantly, there were 9,800 more flats for sale in London in January 2022 than in January 2020.

The market has spoken: for now, they prefer houses.

This means the traditional ‘property ladder’ is temporarily broken. First time buyers, who used to be the biggest source of buyers for flats, are now choosing to skip that stage altogether and aim directly at owning a house.

But if you read between the lines, I’m sure you can see a hidden opportunity.

While the sales demand for flats in the capital is not as robust as the demand for houses, the rental demand remains strong. People still need a place to live, after all.

Even in a competitive market like this, you can still find an attractive deal for a flat. And if you’ve chosen the right area and the right kind of flat, tenants will line up to rent your property.

If you are an investor looking for a long-term asset, buying a flat in the capital is definitely something to consider. Also, although there are no guarantees, sales demand for flats are likely to rebound at some point in the future.

However, if you are considering buying a flat there is one MAJOR thing you need to consider, which is especially important right now.

Not paying attention to this can literally make or break your investment.

We’ll discuss more on this in the next issue of the UK Property Insider.

Invest from the inside,

UK Property Insider