In the past two years, the property market in the United Kingdom has experienced substantial growth. The average housing prices roughly increased by 7% in 2020, despite the lockdowns and all the economic inactivity. Housing prices in the following year also experienced a similar pattern and prices increased by 10.8%. As of April 2022, there was a 1.1% increase in the average house price all over the UK making it the longest successive increase since 2016. There are several reasons that can explain the boom in the real estate market of the UK.
First and foremost, is the pandemic. Since the pandemic hit, there was a disruption in the global supply chain and the financial market also experienced a slump. Whereas, if there was one thing available to people, it was real estate/property. People were in a race for space. In other words, urban dwellers suddenly became more interested in rural properties and vice versa. People were looking for places where they could relax and have the time of their lives as they were now working from home.
Another major reason for the increase in housing prices was high demand and low supply. During all these years, the number of new properties listed on the market is far less than the demand for housing. This has resulted in an exponential increase in house prices. The average house price in the UK for January 2022 was £274,000 which is £24,000 higher when compared to the prices of the previous year. Housing prices in areas such as Harrow, Wembley, and Stanmore have been soaring through the roof. Harrow experienced the highest growth levels in all of the boroughs in London. An interesting pattern of growth is identified when we look at London as the North Western side of the city continues to grow at a high rate whereas other areas such as Westminster, Hackney, Kensington and Chelsea, the City of London, and Southwark have not experienced such high levels of growth.
Is buying a house in Harrow, Wembley, and Stanmore a good investment?
The idea of investing in a house is always a great idea. As property prices are experiencing a sharp rise, it is always better to invest in property. The ongoing surge in prices would not only allow you to increase your money by gaining on the capital you invested but would also keep you protected from the high levels of inflation in the economy. Real estate, regardless of the increase in prices or not, is a very safe place to invest and your money tends to grow with time.
All in all, you can never go wrong by investing in a house or real estate. Financial experts according to the recent market trends are suggesting investing in bigger family houses as the demand for these is rising very quickly when compared to flats or smaller houses. So, what are you waiting for?