Reasons to invest in UK property

Discussion in 'UK Property' started by totallyproperty, Nov 15, 2014.

  1. totallyproperty

    totallyproperty Administrator Staff Member

    The UK property market is often dominated by London which is head and shoulders above the rest of the UK real estate sector. If you dig a little deeper, you will see that while there has been a general recovery in UK property since the 2008 worldwide recession the rate of growth is nowhere near that seen in London. As a consequence there are a number of reasons to invest in UK property such as: –

    Economic stability

    Relatively low interest rates

    Growing demand for UK property

    Growing demand for rental property

    A lack of affordable housing

    New build numbers well below demand for property


    Are there any other reasons why you believe UK property is attractive in the longer term?
     
    Last edited: Nov 15, 2014
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  2. gih_hk

    gih_hk Member

    Agreed. Despite news of a cooling market, as of September 2014, there have been 15.7 prospective buyers registering for every available property in London. This demand is deemed to continue to rise, although quite more slowly, as business transactions in the city have also risen by 8.9%
     
  3. gih_hk

    gih_hk Member

    The construction of Crossrail 2 needs to be looked at as well.

    Increased transport system inevitably attracts more jobs and residents. It’s estimated that employment in areas reached by the new railway will increase by as much as 35% by the completion of the project. It will bring 1.5 million people within a 45-minute commute to the main office centres, of the West End, the city, and Canary Wharf. About 100,000 new jobs are projected to open across the Thames Gateway with better access to Custom House and Abbey Wood by 2018. As an effect, landlords with property investments in nearby boroughs will experience a steady supply of tenants.

    Based from property market reports from Q3 of 2014, supply of residential homes in the capital will remain low even with the recent change in Stamp Duty Land Tax last December 4. As such, people looking to rent will most likely be driven to nearby boroughs with preference for accessible commute to business districts.
     
  4. loribarnaby

    loribarnaby New Member

    Despite a current slowdown in the market, property in carefully selected regions of the UK is offering buyers greatly reduced prices along with reliable long term investment opportunities.
    Listed below are some of the main factors that make property in The United Kingdom a good investment:
    1.The UK’s distressed property sales market proves ideal for investors looking to buy up well-priced residential and commercial properties offering solid rental potential and long term growth prospects. Special reductions and slashed prices are widely available in both the off-plan and re-sales markets, allowing investment opportunities at the lowest possible entry levels.

    2.The UK is a world economic leader and a member of the G8. A founding member of the UN and NATO, it is generally regarded as a reassuringly safe and solid country in which to invest.

    3. The UK is a country rich in cultural identity and natural beauty. This, combined with the nation’s historically stable economic and political environment, is encouraging to many investors.

    4. A large number of direct airline services to the UK’s major national and international airports are available from many worldwide locations. An excellent road and transport infrastructure allows easy access to your final destination.
     
  5. gih_hk

    gih_hk Member

    Hear, hear! Thanks for chiming in.
     
  6. gih_hk

    gih_hk Member

    Also, I can't stress it enough that recent announcements from the Prime Minister indicates a problem with the supply of residential property (still). As long as there is an imbalance in the supply and demand of residential property, London will remain a viable location for property investors and house buyers.

    The only problem is that the rising cost of London property appear to inhibit buyers which is definitely a problem for agents and developers.
     
  7. robertshaw01

    robertshaw01 New Member

    I believe that increasing property appeal in the tough market is becoming passion for potential investors and sellers.
     
  8. robertshaw01

    robertshaw01 New Member

    Hi,

    Just checkin to know that have you got your reason to invest in UK property?
     
  9. George79

    George79 Member

    Definitely politically and economic stability, rising rental fields, record levels of population growth, and there are some predictions that 20% of population will rent within next five years.
     
  10. robertshaw01

    robertshaw01 New Member

    Can someone show the current stats of number of houses in rent in UK?
     
  11. George79

    George79 Member

  12. Sarah Bruce

    Sarah Bruce New Member

    The rental market in the United Kingdom is growing fast, and so too are rental yields for good quality, well-located properties.
     
  13. Ed_P

    Ed_P Member

    This is all very true and I agree, but it is an incredibly saturated market and highly competitive which has put prices up. So for those investing this can be seen as good as you're guaranteed ROI, but I imagine getting into the market to begin with can be increasingly difficult, not to mention expensive!

    Ed
     
  14. valueproperty

    valueproperty New Member

    the crossrail will be a game changer once it completes in 2018. it will significantly reduce travelling time by half
     
  15. Judith Beilby

    Judith Beilby Member Premium Member

    Crossrail will undoubtedly be a boost to property prices however the well publicised benefits have pushed prices up already so beware of reviewing figures and performing due diligence on the delivery of rental yield which will underpin the performance of any new purchases.
    Take care of the yield and the capital growth can take care of itself!
     
  16. KGeeson

    KGeeson Property Forum Staff Forum Partner

    Totally agree with this. You have to buy for cash flow.

    There are plenty of lucrative opportunities outside of London. It's a case of doing research into new infrastructure and areas of redevelopment to find opportunities with good potential for capital growth. Keeping on top of general news (as well as property news) will help identify these areas early.
     
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  17. nmb

    nmb Well-Known Member

    There are many reasons to invest in UK property including: –
    • A growing population
    • Significant underinvestment in new build properties
    • High demand for rental properties
     
  18. Ricky Bhurji

    Ricky Bhurji Member Premium Member

    Not to mention a good government - despite the recent rises in tax for landlords - this will, in my view flush out the novice investors from the professionals.
     
  19. PropEx

    PropEx Member

    Ricky, I assume your last post was a joke? Why is it a good place to invest with the tax laws changing and the wear and tear allowance being scrapped? Not to mention the pathetic yields! You can easily invest in the USA for less money and far better yields. If anything, it will be the professional investors getting out of the UK market, whilst leaving the novice investors struggling to pay their mortgages, especially when interest rates go up.
     
  20. Judith Beilby

    Judith Beilby Member Premium Member

    In terms of new purchases for BTL's there will be more products coming onto the market which cater for Ltd company purchases, you can see this happening already. The benefits of offsetting the interest relief and taking dividend payments to claim income will work out a much more profitable investment vehicle for most new purchases.
    Professional investors will not be put off, but will adjust their business plan for the changing market.
     
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