At Barney Estates & Auctioneers, we want to bring the most insightful and relevant market updates to our customers. In this news article, we have compiled our latest findings that may interest our potential customers.
What did better in 2021, property or land?
Whilst it’s likely true that the majority of the property market jumped to purchase residential property due to recent stamp-duty cuts, making land purchases a less popular and unfathomable option in comparison, due to UK Government incentives for residential purchases.
However, the 2021 Q4 Farmland Index report by Knight Frank indicated that there was an average increase of 4% in bare land prices within England and Wales within Q4, therefore, equating to a total increase of 10% throughout the entire year — providing the largest annual rate of growth since 2014.
Image Source: Farmland Index Q4 2021 (Knight Frank)
The report doesn’t suggest which of the two property or land assets are better in terms of capital growth. However, it did indicate that both UK residential property and English farmland gained capital growth between 2020 – 2021.
Has the market been stable?
According to the same Farmland Index report, whilst the FTSE 100 dipped during the start of the pandemic between 2019 – 2020 and gold fluctuated up and down, the UK house prices and English farmland prices didn’t have similar sudden movements within the index. Therefore, suggesting that even during a global pandemic they proved to be a more stable asset than the FTSE 100 and gold.
Image Source: Farmland Index Q4 2021 (Knight Frank)
Is London the best place to buy?
At the time of writing, here at Barney Estates & Auctioneers, we hold some excellent residential properties in London.
Given the graph above does suggest some stability between 2020 – 2021, yet no apparent growth in comparison to other residential properties throughout the UK, it’s still worth exploring the option to buy in whilst the market growth is stable.
Investing in property outside of London
In recent months, we’ve acquired a large portfolio of properties based in Ashington to supply to the market.
With Ashington being a town in Northumberland and not too far from the popular city of Newcastle upon Tyne; the Northumberland county council have a regeneration investment plan in place for Ashington, with the council’s vision of completion by 2030.
In comparison to London, residential properties in Ashington do seem extremely desirable for their prices in terms of guide price*, Investing in a town such as Ashington, today, could allow for a larger return on investment than other towns with no investment plans.
Therefore, if you are interested in purchasing land, commercial or residential property on auction, please sign up for our newsletter in order to keep up-to-date about our next auction events.
This article is purely speculative and should not be mistaken for financial advice. Readers should consult a professional independently before making any financial decisions.