Reasons to be cheerful about investing in the South East property market – Part 1  

2nd October 2019

You may be wondering how the housing market is fairing up with all the current uncertainty, but if you're looking to invest in a new home in this area, or add to your portfolio, we have a few reasons to be cheerful about the South East property market specifically. According to the latest Nationwide house price index, annual house price growth in the South East fell to -0.6% in September, compared with +0.2% nationally, with the average house price in the region now standing at £278,134. 

Predictions of doom and gloom for the property market are, though, in our view, misplaced. Let's look at the positives. Inflation is low at 1.7%, unemployment is at record lows, corporate balance sheets are strong and the present government is giving very clear signals of its intention to ease monetary policy and give a fiscal boost to the economy regardless of what happens at the end of this month... All of the above should help improve the overall quality of the tenant pool. More jobs, or the potential of payrises and better bonuses will help create demand for better quality properties. In addition, it currently seems like mortgage companies are a little more flexible and borrowing is costing less than it previously has and this could mean that you're able to overpay your mortgage a little quicker to increase the equity and lower the cost of the overall term (check the terms of your mortgage first). The financial services industry clearly still believes in property and is willing to compete hard for the business of home-owners and property investors. We'd go as far as to say that it's a good time to be a borrower. 

Prices in the South East are still 28% above their pre-financial crisis levels and are less than 2% off their all-time high, which was seen as recently as the latter part of 2017. Another positive indicator for the property market is the availability of mortgage finance and the competitive rates that are available. Contrary to any sort of recession in property, what we are seeing is prices stabilising. This inevitably means some regions showing gains, while others suffer modest falls as the balance between affordability and opportunity is sought - and the South East has always been at the top end of the affordability equation. This is no bad thing. A stable property market is easier to manage than boom and bust for home-buyers and property investors alike.

There is no doubt that property remains a very good investment. Whether you're a home-buyer, developer or a landlord, we have some exceptional buying opportunities available from land to apartments, and houses to large estates across the East and West Sussex area, and would be delighted to discuss your requirements.


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