Could now be the best time in history to invest in property?

August 5, 2020

The COVID-19 pandemic has triggered some of the most spectacular economic crashes in living memory. The EY Item Club projects that the UK economy will shrink by 8% in 2020. The Organisation for Economic Cooperation and Development is more pessimistic, predicting an 11.5% contraction – or a 14% one if a second lockdown takes place. 

Savills, meanwhile, projects a blanket 7.5% fall in house prices over the course of 2020. Whichever way you look at it, the housing market, along with the wider economy, is going to take some time to get over the impact of the novel coronavirus pandemic. 

So why does all this add up to such a great time to invest in property? According to one of the world’s most famous investors, Warren Buffett, it’s wise for investors to take an approach of being “fearful when others are greedy, and greedy when others are fearful.” Right now, plenty of people are fearful. 

“COVID-19’s economic impact is quite staggering when you look at the UK economy as a whole, just as it is for other economies around the world. But such a situation is not without its opportunities. For property investors, there’s plenty of potential to buy at a reduced price, then sit tight as values rise over the coming years.”

Dale Anderson, Managing Director, Fabrik Invest

The speed of the country’s recovery will play a key role in the decision to invest. The raft of measures introduced by the UK government is clear evidence of its commitment to do “whatever it takes” (in the words of chancellor Rishi Sunak) to overcome the economic impact of the virus. 

This policy includes measures to keep the housing market ticking over, including a stamp duty land tax holiday until April 2021. This means that investors can save as much as £15,000 on the purchase of a property between now and the deadline, making buying now particularly appealing. 

In terms of prices, Savills’ five-year forecast is still overwhelmingly positive, projecting an average rise of 15.1% nationally by 2024. That includes a projected increase in property values of 5.0% in 2021 and 8.0% in 2022. 

Within certain regions, those figures are even more impressive. Leading the field is the North West, for which Savills is projecting an increase of 24.1% over the five years to 2024, with an increase of 8.5% in 2021. If the situation plays out in accordance with the projections, that means that investors in the North West can buy now and reasonably expect their property to be worth more by the end of 2021.

“A sensible, low-risk approach to property investment means choosing homes with a focus on medium- to long-term goals. It’s not about flipping but about building up a solid portfolio with assets that will appreciate over time, as well as providing an income while they do. This is what makes buy-to-let in regions such as the North West of England particularly exhilarating right now.”

Dale Anderson, Managing Director, Fabrik Invest

The other key factor that supports now being such a good time to invest in property is the UK’s fundamental lack of supply of new homes. The country has been building fewer homes per year than it needs to for well over a decade. Quite simply, the country doesn’t have enough houses. This is the final piece of the jigsaw for investors who are looking to strike while the time is right. 

For further details and to discover a range of exciting property investment opportunities, call Fabrik Invest on 020 8175 9891, email enquiries@fabrikpropertygroup.com or visit www.fabrikinvest.com

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Wayne Venter

International Business Development Manager

Wayne has been in the property industry for over 17 years. He started out selling residential properties in the northern suburbs of Sandton, South Africa, for one of the bigger real estate brands, before moving to a boutique, Johannesburg-based property developer. He worked at a senior level, specialising in residential developments on the north coast of KZN and various other areas of Northern Johannesburg.

Wayne moved to selling luxury, free standing homes and apartments in Sandton, Johannesburg in 2006, having joined the Country’s leading real estate brand and within six months was leading the team. In 2008, he began to focus exclusively on the luxury apartments in central Sandton, priced from approximately R2 million to R60 million. Over the years, he has also added commercial property sales and rentals to his repertoire, as well as building his own investment property portfolio between 2011 and 2018.

By 2018, realising where the South African property market was headed, he sold out of his investment property portfolio to de-risk and went looking for a real estate company to buy into. South Africa’s property market was extremely volatile at that time, so Wayne took the initiative and moved to London to work in property in the UK.

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Edward Snell

Senior Property Consultant

I live in Spanish countryside with my wife and our 11 rescue dogs.

Originally from Bedford, I have two sons, two step children & 6 grandchildren.

I have a keen interest in property investment and over the years have built up a personal portfolio for the purposes of rental income and capital growth.

I have over 20 years’ experience in property investment, both in the UK & overseas.

My other interests include animal welfare, football, motorsports, travel and music

My personality is of an even temperament and I enjoy the cut and thrust of doing deals.
I am happy and successful in what I do & take great pleasure in providing my clients with successful outcomes.

I’m a good team player but work well as an individual.

Daniel Harburn

Property Sales Consultant

Daniel had a passion for property from a young age so he began his working life by undertaking a plumbing apprenticeship for a large well known UK developer to pursue a career in construction. After qualifying he soon realised that building relationships was a preferred skill of his due to his loyal and trusting nature.

From then on Daniel launched his career in sales where he worked his way to to a high performing sales person at a creative media company. Part of Daniels success in accumulating clients over the last 10 years is put down to his diligence in customer experience.

Daniel has a keen interest in golf and also in keeping himself fit which is essential as he and his fiancé have 4 year old twins, Jacob and Sofia who keep them both on their toes.

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