As a buyer or property investor, you’ll probably already have your wish list for your desired property. But what other factors could influence your decision?
To help you ensure that you’ve considered all aspects of your first or next property purchase, we’ve collated 7 of some of the most important factors that could influence your choice.
1. Market trends in the UK property market
It’ll come as no surprise that what’s currently happening in the property market will greatly influence when and what type of property you choose to buy. In the latest Halifax House Price Index, house prices across the UK averaged at £291,029, a monthly increase of 1.3% and an annual change of +2.5%.** What this top level doesn’t provide you with is insight on regional trends or differences in property types. If you’re undecided whether you want to buy a house or a flat,
check out our quick guide here to help you make a move.
2. Economic factors influencing property prices
Other important factors that will not only influence property prices, but also your choice of property are interest rates, mortgage rates and the current rate of inflation.
The Bank of England has kept the base rate at 5.25%, and the current inflation rate (from 14 February 2024) is 4%.* These are two important points that, together with the current market trends, can influence mortgage rates and the types of mortgages lenders offer. If you’re wondering which mortgage would be the best for you, check out our article about mortgages here, where we give you an overview of the mortgage options available.
3. Government policies and stamp duty
Many Government initiatives and various tax schemes will also play a large role in how much you pay for your property of choice. Arguably, the tax that will have the greatest influence is what is referred to as Stamp Duty Land Tax (SDLT) in England, Land and Buildings Transaction Tax (LBTT) in Scotland and Land Transaction Tax (LTT) in Wales.
SDLT, LBTT and LTT are all tax that must be paid when buying a property or land over a certain price, and is paid in addition to the agreed upon property price. Different tax bands exist, depending on the property’s price and are set locally.
For England, find more information about this here. For Wales, read on to find out more, here; and for Scotland, click here.
4. Investment potential and rental yields
Whether you’re new to the buy-to-let market or simply looking for a new opportunity, the property’s potential, including its rental yield, may play a significant role for you. Among other factors, you’ll probably also want to consider who you’d like to rent the property out to and the type of let.
For a comprehensive introduction to investing, chat to one of our local lettings experts.
5. Environmental factors
Is there a risk of flooding, subsidence or other environmental factors that could affect your property of choice? You might find your perfect property, but after requesting a survey, you might find that certain structural damages or environmental factors could make the property less attractive or the repairs and adjustments could be outside your budget.
Having a survey done is a good way to avoid any unwanted surprises. If you’ve found a property you love and need to have a survey done, check out the various survey options we can offer you here.
6. Location and neighbourhood insights
Whether you’re a first-time buyer, up-sizer, down-sizer or property investor, looking for your next buy-to-let opportunity, location and neighbourhood insights are where you’ll want to do your research or chat to a local expert who can help you find what you’re looking for.
If you’re looking for a new home, you may want to consider your lifestyle, and other factors, including how far you want to live from your place of work, family, friends, etc. However, if you’re an investor, you may want to consider other factors, such as the types of renters you would want to attract, e.g. students, families, young-professionals.
Do you need insider knowledge on what areas may be the most suitable for you, have a browse through our blog section, where you can find investment guides and local area guides. For example, read our guide on the best buy-to-let investment areas for this year.
7. Personal circumstances and future plans
Your personal situation influences your property choice. In many cases, it can influence the size of the property you buy, its age, as well as its condition. A larger, older property may cost more or need more up-keep, whereas a more modern, or recently refurbished property may need less future investment.
You may also want to consider buying a new home, which comes with many benefits, including being chain-free, often including certain white goods and appliances and meeting all the current building regulations and standards. Read more about the benefits of buying new here.
Whatever stage of buying you’re currently in, we’re here to help. Whether you want to sell your current property, find a new one or simply want to pop in for a chat to discuss your options.
