Richard T Lishman: Navigating the Property Market

Dental Finance
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

Richard T Lishman asks: “Are you thinking of investing in property? Then best take note”

Richard Lishman talks about what dental professionals might need to bear in mind if they are thinking of buying or renting a new home or investing in a new practice during current market conditions.

The UK property market is an unpredictable beast. At the outbreak of the Covid-19 crisis, the future seemed so uncertain that many people would think twice about investing in new properties and the market value must surely come down. And at the beginning of the pandemic this was certainly true.

And yet, thanks to the exceptional level of government support granted to both businesses and individuals, the property market has remained fairly stable. Measures such as the Furlough Scheme meant people still received the bulk of their wages, and some took this as an opportunity to invest in property.

Using business grants or Furlough Scheme funds this way – when you didn’t need to take them – is tantamount to fraud, so, if anyone has taken this route it’s important to pay these funds back to the government. It’s likely that once the pandemic has settled down and we reach whatever ‘normal’ the future holds, the government will be on hot on the trail of any businesses and people who broke the rules.

Interestingly, the renting market has remained on par with the housing market. Some wily dental professionals are choosing to sell their home while prices are good, then rent in the interim time before the inevitable market changes take place, this might be a good way to get the best deal on future properties.

But caution is advised. Despite easing of certain restrictions, we have to remember that the pandemic is far from over. With new variants evolving, it might make sense to hold on to your money or sell a property if you have a portfolio, in order to create the financial safety net to fall back on should things go wrong.

This applies to practice acquisition too. Many professionals are choosing to sit safely on their funds until their situation settles down. This is a smart move, especially as it is unclear whether the government will need to extend furlough or offer business grants again, especially if we do need to head back into lockdown or return to the tier system, which the PM has not ruled out.

Like so many things these days – including energy prices, National Insurance rates, our relationship with Europe – the property market is in a state of flux, but for the most part property prices have fallen over the last ten years. Recent reports have also found renting to be, for the first time in many years, a cheaper option than buying [1] subject to location.

A rental in London is still likely to cost more than a property in the north of England – but this is another facet to the equation to consider if you plan to make any changes to your property situation in the near future.

Ultimately there are benefits and risks to any property option, which is why it is always important to seek expert advice from resources such as the award-winning team of independent financial advisers (IFAs) at money4dentists. Why not get in touch? We’re ready to help you.

Author:

Richard T Lishman is a regular contributor to Dental Review, and the founder and CEO of money4dentists. For more information, call 0845 345 5060 or 0754DENTIST, email This email address is being protected from spambots. You need JavaScript enabled to view it. or visit www.money4dentists.com 

1] The Week. Why Renting a Home is Now Cheaper Than Buying. Link: https://www.theweek.co.uk/953158/uk-property-market-renting-now-cheaper-than-buying [Last accessed June 21].