The UK property market is one of the most popular in the world offering a large number of different properties in many economically different areas. As a consequence, it will be no surprise to learn that many experts believe the UK property market will remain a focal point of the worldwide real estate market for many years to come. However, what are the main reasons for investors to look towards the UK property market in years to come?
When the UK government decided not to join the euro there were howls of laughter from fellow EU members and politicians were ridiculed by the opposition. Looking back, the euro has gone through a torrid time and is not yet out of the woods. There is a growing belief that the relative economic stability of the UK is partly as a result of the decision not to adopt the euro. It is also worth noting that historically the UK has had a very stable economy and there is no reason to suggest this will change in the foreseeable future.
Immigration and population growth are never far away from the UK media headlines and this is a trend set to continue for years to come. Many governments have tried and failed to control immigration as demand for UK property continues to push prices higher and higher. It is also worth noting that the “right to buy” scheme introduced by Margaret Thatcher in the 1980s was pivotal to the growth in homeownership across the UK.
Lack of affordable housing
A lack of affordable housing across parts of the UK has been headline news for many years and, as with immigration, few governments have been able to tackle this problem. Despite promises to significantly increase the number of new build properties per annum this will take many years of catch up. In the meantime there will be greater demand for property than the current supply line can cope with. There will come a point when property prices reach levels unaffordable to the mass market and the recent changes in buy to let tax regulations could take some steam out of the market in the short term.
The old days of low quality high occupation student properties have fallen by the wayside leaving a new market which is now worth £200 billion a year globally. This market has been revamped over recent years and the huge student population in the UK has created demand for quality accommodation across the country. It is worth noting that the influx of foreign students has also led to greater demand for student accommodation pushing up the price of properties local to major further education facilities.
These are just a few of the reasons why many investors are looking towards the UK property market as a long-term home for their funds. This is before we even begin to look at local opportunities which are emerging right across the country. The only dark cloud on the horizon is in/out EU referendum, due no later than 2017, which could cause a short-term cooling in the UK property market until investors are able to see the way ahead.