The UK housing market is currently stable for the first time since the global market crash of 2008. We have seen prices in Harlow rise considerably over the last 3 years. Property in Harlow has achieved a consistent price rise finishing in 11th position in 2016 according to Land Registry for price rises in the UK .Therefore still offer a better return to investors than investing money in traditional savings accounts.
The market has remained strong with more buyers than vendors and we believe that Harlow is still being identified by investors as a hot spot with realistic achievable profitable yields. We feel that Harlow’s market continues to outperform the property market as a whole, it is therefore a strong area which will continue to attract buyers and builder/developers.
Nationally buy-to-let activity is down (primarily due to the introduction of buy-to-let/second home stamp duty levy) and we are likely to continue to see a slowdown in the sector as a whole. On top of the buy to let/second home stamp duty increases landlords will also see the start of the withdrawal of tax relief on mortgage interest.
Rental yields have dropped since the hey days of 10 -13% gross. But it is now widely considered that anything between 5 - 6% gross is a great place to start with your investment. Prior to 2014 Harlow saw a rental increase of between 2.8% to 3.4% PA. In the last few years we have now seen this leap to 7 % to 10% PA. Therefore still offer a better return to investors than investing money in traditional savings accounts.
With the planned improvements and expansion of Harlow over the next 5 – 10 year period we truly believe that Harlow’s market will remain strong for the foreseeable future. Traditionally buyers come from the greater London area enjoying the green spaces and cheaper values and rents that Harlow provides. Easy access back into London, makes it clear why many families opt for a quieter suburban lifestyle outside of London in the Harlow area. It also explains why this attracts investors who would like to buy to let properties for these migrating families.
We believe that investors will continue to enjoy the record low interest rates that are currently being offered and the appealing Buy To Let products. We understand that the entry into the Buy to Let market has become more expensive but we still see that it is one of the most worthwhile forms of investment and certainly a secure investment for the future on a medium to long term basis. Although no one has a crystal ball, we believe that the market here is a very robust one and with the M11 corridor appearing to be the best performing area for price rises over the last few years we can see that Harlow is strongly placed as a good opportunity for buying.
Harlow has easy links back into London, Stansted Airport, good public transport, good to outstanding schools , plenty of green spaces and local amenities and facilities in abundance. This is why it has been earmarked for further expansion and investment by the Government with the green light being given to the recent paper in February 2017 allowing the construction of 16,100 new homes between High Wych and Widford to be known as Harlow & Gilston Garden town. Work is scheduled to begin on this development in 2019 at the current time of writing.
Investment for life