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Should you Take Advantage of Falling House Prices?

The nation’s housing market has been volatile over the last couple of years, mainly due to political influences such as Brexit. The UK’s uncertain economic climate has had a huge impact on the housing market, and the change in stamp duty for buy-to-let properties and second homes has also weakened demand for properties.

The slowdown in growth is usually seen as a negative thing, as homeowners will lose out when selling. However, a fall in house prices can create an interesting prospect for the entrepreneurial opportunist. If buyers move fast, they can take advantage of low house prices before they are predicted to start rising again.

Halifax, Britain’s largest lender, released its figures for June showing property prices were falling fast. UK prices fell 1% in June, which is the largest drop since January. It is the third month in a row in which figures have fallen, and that hasn’t happened since 2012. According to Halifax, growth in house prices is now down to 2.6% in June – the lowest increase in four years.

The evident slowdown is particularly evident in London, where house prices are inflated compared to the rest of the UK. In fact, over a third of properties on the market in July slashed their asking prices according to research from HouseSimple. So is now the time to invest in a property or two?

Falling House Prices: An Opportunity?

First time buyers are happy at this news as it means they might actually be able to get onto the property ladder at last. However, commercial buyers and investors could also capitalise on falling house prices. A reduction in prices means buyers get better value for money, however more owners may hold onto their property for longer to see if they will be able to get a higher price in the future.

A fall in property prices can be a perfect business opportunity – but you’ll have to act fast. You never know which way the market will swing, so you could end up paying thousands more even by pushing back your search a month or so. If you find the ideal property at an ideal price, be sure to secure funding from a lender who will pay out in good time. If a mortgage application takes too long or is refused, then the seller will look elsewhere. If you want a quick transaction then sometimes it’s acceptable to apply for bridging finance instead, which is paid out at short notice. Once the short term loan needs to be paid off, you can convert it into a mortgage if needed.

Do you want to see what property opportunities are waiting for you? Speak to us today about commercial mortgages and bridging finance.