Property prices on the rise: Time to invest in housing market boom
House prices rose an average £15,000 last year, far outstripping the returns on a savings account. The official figures were seen as further evidence of the wisdom of buying your own home. Investing in bricks and mortar will prove far more profitable in the long term than paltry interest rates offered by banks since the credit crunch of 2008.
GETTY The time is right to invest in the housing market as property prices are going up
And the booming housing market means property is forecast to play an increasing role in pension planning for retirement. Estate agent Alex Gosling said: “Savings accounts offer pitiful returns and you can see why bricks and mortar have an enduring appeal. “Property has proved to be extremely resilient in the face of some pretty seismic news events over the past 12 months, such as the Brexit vote and the Donald Trump result.” Mr Gosling, the CEO of online estate agents HouseSimple.com, added: “Many people in this country see their home as their pensions.
GETTY The booming property market is expected to play a role in retirement
“This is hardly surprising when you consider the alternatives for investing for the future and retirement.
We have more confidence in property than we have in the stock market Alex Gosling, House Simple.com
“We have more confidence in property than we have in the stock market, because we have the reassurance of knowing that even if property prices dropped, there is still an underlying asset. “Doom-mongers expected tax changes on buy-to-let to dampen that market. “But landlords haven’t run for the hills – the appeal of rental income and capital growth can’t be matched by any other investment.
Britain’s best new homes Mon, September 8, 2014 The Royal Institute of British Architects (RIBA) has announced the shortlist for the 2014 RIBA Manser Medal, the UK’s most prestigious housing design award. A summer house by the sea on the south coast, a refurbished ‘black-house’ on the Isle of Tiree; a futuristic double height extension of a Georgian Villa in north London; a striking brick house wedged into a difficult site in Barnes village; a minimalist hidden home cut into the cliffside on the Isle of Skye and a contemporary castle nestled on a hillside in the Gower peninsula are all in the running. The RIBA Manser Medal winner will be announced at a special event on 16 October at the RIBA in London. RIBA President Stephen Hodder said: “The six homes in the running for this year’s Manser Medal are the best of British housing design. With each of the projects, the architects have added real value to the homeowner’s happiness and wellbeing. Play slideshow Charles Hosea 1 of 26 Stormy Castle is a contemporary private house in an area of outstanding natural beauty on a hillside on the Gower peninsula.
“It will take a lot for the British to fall out of love with bricks and mortar.” The typical UK property value was £220,000 in December, a £15,000 increase compared with a year earlier, according to the Office for National Statistics. The main increase was in England. Prices rose by 7.7 per cent over the year to December to an average of £236,000. Wales saw a leap of 4.7 per cent to £148,000, while Scotland rose 3.5 per cent to £142,000. In Northern Ireland the price of a three-bedroom semi hit £125,000 after a 5.7 per cent hike in 12 months.
GETTY Property proved resilient to news of Brexit and Donald Trump's presidency
“Investing in bricks and mortar is providing a substantial return – and with demand high, house prices are bound to inflate even further,” said Rachel Springall, finance expert, at comparison website Moneyfacts. She added: “Savings rates are appallingly low right now and inflation is rising, so savers with a substantial amount to invest would be wise to seek financial advice. “To earn £15,000 in a year, a saver would have to have £300,000 and find an interest rate of five per cent.
GETTY There is more confidence in the property market now, than there is in the stock market