Are UK house prices dropping?
A popular question we’ve seen circulating online and within the Dental Property Club circle since the announcement of the recent recession is, “if house prices are static or starting to drop, should I hold off from investing in property?”
And the answer is both yes, and no.
Why do UK house prices dropping affect my investment?
It all depends upon your strategy as to whether house prices affect your investment.
Let’s look at property flipping first.
Flipping properties is where you buy a property, complete a refurbishment of that property and then put it back on the market at a higher price point than what you bought the property for. So if you are flipping properties, then in a downward market, this strategy will struggle. Why? Because you are buying a property to try and uplift its value by adding value and then going against the downward market to get a higher value.
Now let’s look at investors.
For general investors this could be the perfect time to buy. Why? Why would a recession be the ideal time to invest in property? Because as a Buy to Let investor, you are in it for the long term game. If we’re a buy to let investor, we don’t care what happens to property prices in the short term, because we have no intention to sell that property!
How will I know when the UK house prices will start dropping?
The answer is very simple. We don’t! No one can predict exactly when is the best time to buy, when the UK house prices will drop or if they’ll remain static. If someone could predict those factors, then they are probably sitting in some hot climate on their own private island without a care in the world!
This is why DPC is here to help first time or current property investors. We aim to teach you the ins and outs of property investment to help you achieve your goals.
To find out more information, contact us by clicking here.
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