Interest rates are an all time low — This applies to both saving and borrowing. The Bank of England rate is at a record low of 0.10% (as of 19th March 2020). This means your cash sitting in a savings account will now have a reduced rate of interest, which means your money is effectively deteriorating in value. On the other hand, buying an investment property with an interest-only mortgage would mean you can borrow at a lower rate, and also pay a reduced interest on monthly payments, whilst maintaining the market rates for rents.
Rise in unemployment — This for me is a primary indicator in the current economic climate due to coronavirus. The rise in unemployment means less people will have money to buy a property. This creates a void in demand within the sector and you can get properties at discounted rates than you would have otherwise.
The Brexit uncertainty is still looming upon us — As Covid-19 tops the headlines, it seems people have forgotten that the UK is due to leave the EU at the end of 2020, which would therefore add fuel to the fire and continue the economic uncertainty for another 2–3 years.
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