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How to beat inflation with UK property

Beat inlfation with UK property

If you’ve been paying attention to the news recently you may be debating how to beat inflation. It is currently running somewhere in the region of 5% and is expected to exceed 7% by the spring – with the possibility that it could run higher depending on how the economy continues to recover from the pandemic.

With the announcement this week of the lifting of all remaining COVID restrictions, there is hope that the economy can get back to a certain level of normality sooner rather than later, whilst most of Europe continues to count the cost.

Amidst the backdrop of the pandemic, international tensions around Ukraine are unsettling markets meaning that both stocks and cryptocurrencies are feeling the strain, dropping fairly significantly this year.

It’s hard to say for certain how this year will eventually play out in terms of the economy, especially as Brexit issues continue to bite, so this leads us to the question, what can you do to beat inflation?

Can UK property beat inflation?

One way to beat inflation is with wise investments that exceed inflation. Of course, there are other ways like ensuring you’re getting a savings account with the best rates, cutting costs and perhaps shopping somewhere cheaper for your food, but the rate in which inflation is currently increasing, this won’t make a huge difference.

In terms of inflation busting investments, there are certainly some stocks and cryptos you may consider, but their volatility leaves a lot to be desired if you’re looking towards more reliable investments.

If you’re looking at stocks then momentum stocks should be out of the equation in favour of value stocks and more long term investments.

With all of that in mind, buy to let is easily the most stable and reliable investment in the UK at the moment. With house prices rising by an average 10% over the past 2 years despite the pandemic, the current rate of increase on value is higher than inflation.

Not only do buy to let investments currently return more than inflation, but they also provide a passive income in rental payments. Much like stocks and shares that provide dividend payments, rental income from a property that is also increasing in value is absolutely one of the best ways to beat the current increase in inflation.

Where to invest in buy to let property

Areas across the north west of England, as well as the midlands, are currently some of the best returning areas in Europe.

There are areas across Manchester, Nottingham and other cities that are increasing in value by almost 20% annually, and providing rental yields of nearly 10%.

It’s advisable to do your research on a particular area before deciding to invest either by researching the figures yourself, or speaking to an expert in buy to let.

Our specialists can provide you with all the information you need about the best places to currently buy, the current increase in value, as well as what sort of rental income you can expect to return.

If investing in UK property is something you’ve been considering then why not speak to one of our experts today?