Most people have heard about the crash in UK property prices, but that does not mean that property investment UK is fool-proof. Some prices are low, some properties are undervalued and/or below market value, but others just look like they are.
At the start of the property crash the bank data and indices recorded about a 20% fall, but by the end of 2009 prices were rising again on an annual basis. This recovery continued into the first half of 2010, stagnation dominated the second half, and then prices are falling again now. All that data is based on national indices, but local stats paint a completely different picture. In most of London prices have risen consistently since April 2009 till today, whereas in the north the same consistency has been achieved but with prices going in the opposite direction.
The truth is that the national statistics, the bank averages are absolutely useless for investors. You can buy an investment property in UK, you need to buy on a street, in a town, in a county, and every county, town and indeed even street has its own pricing idiosyncrasies. In order to spot a good investment property in the UK at the moment we need to research not only locally, but on a deal-by-deal basis.
Example Strategy for UK Property Investment - Auctions
Auctions are a great way to find investment properties in the UK. You simply seek out auctions 1 month or more in the future, and identify properties that meet your criteria on the auction website (most houses have websites these days).
This is when the research starts. You take the list of properties that meet your criteria and asses the true market value. In the residential sector, the UK Land Registry website has an excellent facility (www.landregistry.gov.uk and click house prices then search the index) that allows you to find out recent sale prices by postcode. We agents can also phone estate and pose as a seller in the area. When we have decided on what we believe is the properties' true market value we can arrange with the auction house to go on one of the viewings, and make sure there are no hidden surprises. Then if you can get the property within your bid budget you should be onto a winner.