For a long time now, we have been hearing dire predictions about the future of the UK economy. With Brexit having dominated headlines for months, speculation has been rife as to how it might impact everything from interest rates to house prices, with many worrying that our exit from the EU could have a potentially devastating effect on our everyday lives.
Hot on the heels of Brexit, uncertainty has come another public scare: the emergence of Covid-19. With governments around the world warning that this could have a highly destructive impact on the global economy, we have already seen share prices plummet and financial markets struggle.
Yet, if there’s one area that seems to have remained unaffected by these two massive international events, it is house prices in Cornwall. Continuing to rise at a rapid rate when compared against the national average, we have seen growth outstrip that of other areas by almost 50 percent.
Indeed, according to figures released in March 2019, homeowners were finding that their properties had gained, on average, around £6,980 in value in the space of a single year – a rise of 3.1 percent – though nationally house prices around the rest of the UK grew by just 1.7 percent in the same period.
For those living in the area, the implications of this are clear: with market growth showing no signs of slowing, 2020 might be the ideal time to buy.
Why 2020 is the right time to buy
For individuals looking to purchase a property in Cornwall, the current value of homes and commercial premises may seem prohibitive, but they actually mean that 2020 could be the perfect time to buy.
That’s because the increase in house prices shows no signs of slowing, meaning that this trend is only likely to continue. What this could herald is the emergence of a property bubble in which it becomes nearly impossible for first-time buyers, families, and small business owners to get a foothold in the area.
The upside to this is that those who are savvy have the opportunity to turn this potential problem to their advantage. By breaking into the market now rather than holding off from buying, they have the chance to invest in a property that will only increase in value as time goes by.
For those hoping to do this, experts suggest it’s a good idea to start considering your funding options now, before prices rise even higher. As a residential buyer, this may mean meeting with mortgage lenders to discuss an application, or else looking into Capital on Tap business credit cards, which offer lending limits of up to £50,000 for those on the hunt for a residential property.
Who’s buying in Cornwall?
If you’re wondering whether 2020 might be the right time for you to purchase a property, you may find it interesting to discover who else is on the lookout for an investment in the current climate.
According to the statistics, first-time house buyers are showing a lot of interest. With strong growth in recent months and an easing off of competition from buy-to-let investors, this market has gone from strength to strength, although many have found the ever-increasing value of properties is continuing to make the transition onto the property ladder difficult.
That being said, there has nonetheless been a 23 percent increase in first-time buyer activity in the space of a single year, with first-time buyer mortgages currently representing 40 percent of the market.
Interestingly – and worryingly considering that we’re now living in 2020 – many of this demographic are male, with women having to save for around two years longer to buy a home, a trend that has been blamed on the gender pay gap.
The same sort of trend can be seen among commercial buyers, a reality reflected by statistics exploring consumer borrowing habits. These show that for every £100 lent to businesses, only £16 of this goes to females, suggesting that women are not only paid less, but finding it harder to fund their business ventures too.
Nonetheless, those who do choose to invest – irrespective of gender or other buyer specifics – in Cornwall’s property market are almost certain to benefit from its exceptionally favourable conditions as the year progresses. With this in mind, isn’t it time that you considered bringing forward your next purchase?