Property in the UK continues to be a sound investment; though you should weigh up carefully where in the country you wish to buy. This is the message which comes out of statistics just released from three diverse sources: the Office for National Statistics (ONS); the Organisation for Economic Co-operation & Development (OECD); and the Nationwide Building Society.
One area where it is almost guaranteed that buyers will not lose out on their investment is London; and it is the figure for property costs in the capital which is driving up prices so much that it could lead to a false assessment of the overall picture if not examined carefully.
Figures from the ONS show that, if you take the UK as a whole, the average price for a house is £260,000, which is 6.5% higher than the previous record reached in January 2008 – before the recession fully kicked in. But if you consider that London has hit a new record high of £485,000 for the average price of a house – more than 30% above the 2008 high – you begin to see that the picture across the country is mixed.
At the other end of the scale, at an average of £132,000, houses in Northern Ireland are still nearly 50% below their record level, which was in mid-2007. On mainland Britain, there is a geographical band across the north of the country from the North West (such as the popular tourist area of the Lake District) through Yorkshire and to Humberside on the East coast, where prices remain around 6% below their previous best.
From an investor’s point of view, however, this could make properties in these areas an attractive proposition. Given the strength of the overall economic recovery in the UK, even in these areas the trend for prices is upwards; short of another serious recession it is highly likely that new highs for property prices will be set in the near future across the country.
The OECD’s figures provide a useful guide for those looking to invest in property globally. If you are looking for a bargain buy, the suggestion is that you would avoid Scandinavia and North-Western Europe, with the notable exception of Germany, where property remains undervalued – by around 5%, says the OECD.
Otherwise, bargain hunters determined to buy in Europe need to look to the continent’s extremities: only Ireland, Portugal and Greece are considered to be significantly undervalued. Outside Europe, the only other country where property is currently notably undervalued, according to the OECD, is Japan.
An attractive proposition back in the UK is the wider South-East region. With an average price now standing at £320,000, this is significantly lower than London. Yet not only are houses in the South-East within easy reach of the capital, many of these properties are significantly larger than what you will find in London, often with sizeable gardens or land around them: ideal for getting away from it all after you close the office door on a Friday evening. And to do away with a stereotype: not only does it not always rain in England, but the South-East is the sunniest region in the country!
