House prices have been in the news a lot lately, and many landlords who bought properties a decade ago have done very well because prices have continued to rise over the years.
Properties in London have risen at an incredible rate, all of which makes the idea of investing in property a very attractive proposition.
But what is in store for the future? Is a buy-to-let property still an attractive investment? According to house price predictions for the next decade, it most certainly is.
House Prices to Increase 50 Per Cent
House prices in the UK are set to rise by 50 per cent over the next decade. This is according to research carried out by the Association of Residential Letting Agents and the National Association of Estate Agents, and compiled by the Centre for Economics and Business Research (CEBR).
However, this is on average, and some areas of the country will see higher increases.
London Prices to Almost Double
Unsurprisingly, London will see the biggest rises in the UK. House prices in the capital are set to almost double, rising from £515,000 at the moment to an average of £931,000 in a decade.
The figures are taken on the assumption that prices will rise much as they have over the last decade. So prices are expected to rise by 4.1 per cent a year in the UK and by 6.3 per cent a year in London.
Price of Renting Also Set to Increase
Landlords will also be interested to learn that the average rent will go up in the UK over the same period. According to the figures, it is set to rise from £134 to £171 a week, which is a rise of 27 per cent.
That is a 2.5 per cent rise a year in the UK. However, in London the price is set to go up from £234 to £314 a week, which is an increase of 3 per cent a year in London.
Because fewer people will be able to afford to buy a home, this will increase the demand for rented accommodation. People living in private rented homes will increase from 20 percent at the moment to 29 per cent in a decade.
No Stopping the Rising Prices
The BBC quotes Mark Hayward from the NAEA saying that prices are "only going to go one way".
Of course, this is not good news for everyone. As fewer people are able to get onto the property ladder, and as rents increase, this is going to cause some problems in the market.
However, for anyone investing in buy-to-let property, this could be a good time to buy.