Skip to main content

Should I invest in property during a recession?

Should I invest in property during a recession

Whether we’re in, approaching or avoiding recession appears to be quite a hotly debated topic amongst politicians and economists right now, but what we can probably confidently say is that the UK economy is experiencing some turbulence thanks to a multitude of factors, and with this in mind, many are asking the question ‘should I invest in property during a recession?’.

This turbulence comes as a result of firstly, and perhaps most obviously, Covid and the economic impact of enormous financial support for the country during the lockdown, and secondly, the war in Ukraine that has driven prices up around the world for raw materials such as wheat and oil, driving inflation and increasing the cost of government borrowing with it.

Finally, government decisions in recent budgets and financial statements last year didn’t do a great deal to calm a nervy market, although the bulk of the damage appears to have been repaired with the chancellor, Jeremy Hunt, announcing a reversal of the majority of those measures.

That sets the context for our question, but now let’s answer it.

Should I invest in property during a recession?

Ultimately, most will consider investing during a recession something of a risky business. That being said, any investment is ultimately a risk-balancing act.

As Warren Buffet famously said, “Bad news is an investor’s best friend, it lets you buy a slice of the future at a marked-down price”.

Thankfully for property investors, property prices aren’t falling, they’re still increasing according to Zoopla, albeit at a slower rate than during the pandemic.

Overall, UK property is one of the safest investments you can make right now, with stocks, shares, crypto and other investment avenues faltering.

Whilst most assets will likely decrease during a recession, UK property tends to stay fairly resilient and avoids the wild swings in value often seen in the stock markets, currency and other markets.

One thing that appears to set the UK property market aside in this regard, however, is how remarkably consistent rental income stays during even severe recessions across the world.

The fundamentals of the market remain true despite volatility in the wider economy – there simply isn’t enough supply to satisfy the demand for housing, and this isn’t likely to change in the near future, with house building nowhere near where it needs to be to meet this demand.

Realistically, there aren’t many assets that will hold their value or increase in value during a recession, aside from property. Not only an asset that will increase in value, but also one that will provide a healthy and increasing passive income.

That’s without considering the rise in asset price when you buy off-plan property, which tends to increase in value in the time that you purchase and the time it’s completed.

All in all, there are no guarantees when it comes to investing, and everybody’s investment goals will be different, but if you’re in a place where you can afford to invest in property to reap the rewards, then there aren’t many better places to put your money during a recession.

Invest with Knight Knox

Whether you’re a first-time investor looking to enter the market or an investor looking to build on an established portfolio, we can help.

With almost 20 years of experience under our belts, we are perfectly positioned to give our clients a personal service to ensure that their buy-to-let investment needs are met and make the buy-to-let process as simple as possible.

Take a look at our current investment opportunities here!

    Are you interested in investing in property?

    Request a callback to discuss investment opportunities with one of our property experts.


    We respect our clients' privacy. Your personal details will not be shared with third parties. By submitting your details you consent to being contacted by Knight Knox by telephone and email for this and similar marketing material.


    Other Investment Opportunities

    • Read More +
      Harworth House assisted living properties

      Harworth House

      Prices from:
      £156,000
      Property type
      Assisted Living
      Location
      Doncaster

      Investment Highlight

      The apartments at Harworth House offer 10% NET yields for 25 years

      View Property
    • Read More +

      Coltran Mill

      Prices from:
      £199,995
      Property type
      Assisted Living
      Location
      Mexborough

      Investment Highlight

      The houses and apartments at Coltran Mill offer 9.1% NET yields for 25 years

      View Property
    • Read More +
      Doncaster - Croft Court Listing

      Croft Court

      Prices from:
      £191,579
      Property type
      Assisted Living
      Location
      Doncaster

      Investment Highlight

      Croft Court offers a 25-year rental lease with 9.5% yields and annual inflation-linked rent rises

      View Property
    • Read More +
      Vision

      Vision

      Prices from:
      £86,995
      Property type
      Student
      Location
      Huddersfield

      Investment Highlight

      Vision offers 10% assured NET returns for 3 years

      View Property
    • Read More +
      Rookery Manor Lodges

      Rookery Manor Lodges

      Prices from:
      £187,000
      Property type
      Holiday Let
      Location
      Weston-super-Mare

      Investment Highlight

      Rookery Manor Lodges offers 10% assured NET returns for 5 years

      View Property
    • Read More +
      Image of Bradford city centre, the home of Chapel Street

      Chapel Street

      Prices from:
      £152,942
      Property type
      Assisted Living
      Location
      Bradford

      Investment Highlight

      Chapel Street offers a 25-year lease with 8.5% yields and annual CPI increases

      View Property