It is safe to say that a great many uncertainties facing the UK economy are likely to be diluted, with thanks to a decisive general election result and the UK inevitably leaving the EU with Boris Johnson’s Brexit deal on 31st January. This may result in a modest pick-up throughout early 2020, vastly referred to as the ‘Boris Bounce’, although economists stress that this may be only temporary.
The lack of affordable homes across the UK is a national concern, and the new Conservative Government will give it priority in the five-year parliament. Part of which is Johnson’s commitment to reaching the target build of 300,000 new homes each year, whilst still upholding the pledged amount of 1 million built by the end of parliament.
However, property industry experts are optimistic about the potential for national average growth in property value over the next year. The Royal Institution of Chartered Surveyors forecasts a rise of 2 per cent along with Rightmove, who in addition foresees northern regions performing more strongly than those in the south. “The greater certainty afforded by a majority Government gives an opportunity for a more active spring moving season, with some release of several years of pent-up demand,” comments Rightmove Director, Miles Shipside for This Is Money.
Savills’ five year property forecasts predict there will be a significant increase in mainstream capital value, with North West taking the lead with a five-year compound growth of 24%.
Whilst property prices are still affordable, now is the time to act on investments. But what if you don’t have access to the money to invest right away? Here are UKeo’s top suggestions on how to find the funds so you can strike whilst the property iron is still hot…
1. PEER-TO-PEER INVESTING
A newly introduced product by The House Crowd – Auto-Invest, allows you to invest by your own preference for risk and reward. Your investment is pooled with other investors’ money and automatically spread across a range of their property-backed secured Peer-to-Peer loans, where you can request the return of all or part of your funds with 30 days’ notice under normal market conditions after investing for a minimum 12-month term. If you choose you can receive regular interest payments paid twice a year so you may reinvest your earnings.
This Auto-Invest model protects investors from cases where developments are delayed as investors will no longer have to wait for a single property to be sold to recover their capital or be paid interest. You can also invest tax-free via their Innovative Finance ISA or SIPP. Find out more about the benefits of investing in UK property via The House Crowd’s Auto-Invest model here.
2.RELEASE EQUITY FROM YOUR HOME
Releasing equity enables you access to some of your home’s value whilst still living in it for the rest of your life, rent free – and any money released is also tax free.
It is important that the scheme you choose be approved by the Equity Release Council. All approved schemes offer ‘no-negative equity guarantee’, which means you can be assured that any debt you create, plus any on-going interest which you might choose to add to the sum borrowed, will never become more than the property’s future value when you die.
Some providers will be happy for you to borrow more against your house in order to invest in property, others won’t – you’ll need to check with your lender or broker.
If you’d like to find out more, UKeo’s Equity Release Guide can help you get started.
3. RENT ROOMS IN YOUR HOME
This can be a lucrative option for homeowners who wish to raise money with very little effort by renting out your spare room – and the first £7,500 you earn will be tax-free.
Sites like Spareroom.co.uk make it easy to find lodgers, and you can even specify terms like whether you want someone who’ll stay Monday-Friday if you’d prefer some privacy at weekends.
If you are in the position of being able to devote more time to this venture, you’ll be able to get higher returns by renting your room through short-term lettings sites like Booking.com and Airbnb. Work involved will include corresponding with booking enquiries, checking people in and out and organising cleaning and general upkeep on a regular basis, but profits can be very high if you live in an area with decent tourist or business demand.
Remortgaging can be a great benefit if you are currently on a lender’s standard variable rate (SVR), or a fixed or discounted variable rate deal that is about to end.
Switching your mortgage gives you the opportunity to take advantage of a new mortgage with better features, the security of keeping repayments predictable and (hopefully) lower in comparison to those you are currently making due to higher interest rates.
Get your free remortgaging quote by talking with one of our experts today.
5. START A PROPERTY BUSINESS
If you have the time, drive and commitment, starting a business within property can have many valuable benefits. For instance, say you start a property sourcing business – finding discounted property deals and selling them on to other investors for a fee. This way, you are earning money, developing the same skills you’ll need to make investments yourself, and you will be building your own network in the process.
In addition, there are also a number of other businesses you could start around property, such as construction, inspections, estate agents, letting agents, photography, developing software, and project management.
Capital at risk.