House prices hit record highs

House prices hit record highs

Investing in bricks and mortar has always been attractive, even during economic downturns. We all need somewhere to live, and in October house prices hit record highs.

Despite ongoing global uncertainty, the value of UK homes continues to rise. Property is still an important element of any investment portfolio.

In early November, the BBC reported that the average UK home now costs more than £250,000. That’s a rise of over 7% in twelve months. It’s no surprise that investors look to put significant sums of money into such assets.

However, it wasn’t always that way. There have been dark days.  

The 2008 financial crash!

Anyone who has owned a house over the last fifteen to twenty years will have lived through the global banking crisis of 2008.

Back then, the housing market looked as though it was crumbling. Unaffordable mortgages and loans were issued and some homeowners couldn’t afford the repayments.

The market dipped, people couldn’t sell without making a loss, buyers dried up and banks stopped lending to each other.

Mortgages seemed to disappear overnight as buyers, sellers and banks licked their wounds. Homeowners around the world saw thousands knocked off the “value” of their homes.  

The housing market is resilient

While mortgage products, interest rates and desirable places to live will always change, the basic need to shelter means that people will always need to buy and rent homes.

That means the market might fluctuate, but it can never disappear. Even during the coronavirus pandemic buyers, sellers, agents and mortgage advisers found innovative ways to connect.  

Put simply, the housing market is resilient.

People invest for the long term. That includes the houses they buy. Those homes are much more than financial assets; they are investments for future generations of their family.

During 2020 aspirations have changed. People now crave space, quality of life and more suburban or rural locations.

Such homes often come at a premium, and these sales have helped to fuel the average house price sale.

Making the right home buying decision

Making sure that the home purchase you make is right for your family and lifestyle is important. Understanding cashflow, affordability and how things could change in the coming years should be part of the discussion.

Logic Wealth Planning helps clients to drill down and understand the numbers. We build cash flow plans, analyse historical trends and ensure that all current and potential future expenditure is affordable and realistic.

Covid has changed so much of our daily lives. How we live and work is now in a state of flux. It is harder to make predictions and commitments – especially where significant financial investments are concerned.  

For prospective homeowners, or those looking to move up the property ladder, making the right decisions now means considering many other factors – where some remain complete unknowns.

Trusted independent mortgage advice  

Mortgage deals will keep changing as we emerge from Covid and Brexit. The Logic Wealth Planning team tracks all market trends and help you understand all stages of the home buying process.

The experience of independent advisers means that you will be guided through the best mortgages for your situation.

It could be your dream home or an investment but making sure the background finances are right for you is our priority.

More so than ever, taking independent advice can make a real difference. With experienced experts on your side it’s possible to make more informed decisions as the market adapts.  

Please call us on 0808 1234 321 or email to discuss your plans. We’ll help you navigate the mortgage products that suit your lifestyle and personal goals.

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.

* Logic Wealth Planning provides independent financial advice in Manchester, Bury, Rochdale, Cheshire, and the surrounding area, but not limited to the region.