If you're a property investor looking to cash in on your investment, now may be the right time. Multiple reports suggest that property prices in the UK have reached their peak, and if they can't go further up, you know there's only one way they can go.
This is good news for buyers, but worrying news for sellers. Naturally, if you've invested in a property you want to reap maximum benefits. However, the decision of whether or not to sell is never an easy one to make, even when property market analysts suggest that you should. Let's take a closer look at the figures that have so many property investors on edge.
Where's it all going down?
Data released by property website Rightmove show property prices across England and Wales to have stagnated in June, rising only 0.1% in the previous month, while London property prices dropped by 0.5% on average. The biggest drop was in Haringey, where house prices fell by 4.8%, followed by 3.7% in Barnet and Kingston.
Add to that, the June monthly house price sentiment compiled by estate agency Knight Frank and data firm Markit found that the balance of home owners throughout the UK who expected their house prices to rise in the next 12 months was at its lowest level since December. According to Rightmove, London home owners looking to reap the benefits of a 5 year boom may have already “missed the peak”.
Why is it all going down?
The state of the property market in the capital has long dictated property prices throughout the country. According to Allen Mattich (blogs.wsj.com), greater London and its commuter suburbs represent a quarter of the national housing market. Property prices in the capital currently run at around 10 times the average income. This - combined with recently implemented stricter mortgage lending rules – has made it extremely difficult for home seekers to obtain a lease. Research conducted by the Royal Institution of Chartered Surveyors appears to support Rightmove's findings, which suggest that caution among home purchasers is leading to slowdown in the property market.
What does it mean for sellers?
According to Miles Shipside, Rightmove's housing market analyst, “Some sellers will be looking to cash in and possibly get a lot more house for their money further out, but they may have missed the peak in the rush to realise their gains as parts of London appear to have hit the upper price buffer.”
So the general view of property market experts seems to be that now is the time for property investors to cash in. While there's as yet no cause for scare mongering or panic regarding a potential bust, property analysts such as Dominic Frisby on moneyweek.com predict sideways rather than upwards movement in the market, for the near-future at least.
So if you're a property investor looking to cash in, don't go selling off all your properties in a rush of adrenaline. Take your time, and don't be afraid to seek the advice of professional agencies such as Tepilo. You still have an opportunity to ensure you get the most out of your investment.