Why the UK is considered one of the best countries in the world for property investment
Britain might be experiencing a significant period of economic growth but there is a dearth of new and available housing coming on to the market. This makes suitable investment properties all the more desirable when they do appear for sale.
Returns on investment are expected to be high on premium properties in investors’ portfolios. Recent surveys suggest that Britain lies fourth in world tables, behind the United States, United Arab Emirates and Singapore, when considering returns on investment in property. Economic performance of recent years and prospects of potential growth were looked at alongside population figures to estimate property investment against the backdrop of supply, which is now at an all-time low level. This is balanced against a steady rise in demand for rental accommodation by people unable to afford to buy outright.
Other reasons why Britain’s property market is looked upon favourably include:
A generally stable market that can be relied upon.
A good track record of growing returns, which boosts confidence. The UK has long been a popular destination for overseas investors, enamoured by returns in a strong currency.
Diversity of property and opportunities.
Word gets around and at the moment Britain is seen as a hotspot for property investment. A case of where one goes, others will follow.
Large demand from students and young married couples, seeking accommodation.
Several currencies have been falling to dramatic lows in recent months, compared to the Pound. This only goes to highlight the popularity of British real estate.
House prices have been rising steadily over recent years in Britain. It is estimated that they have increased by 20% and should continue on an upward path whilst there is a stable government. The trend is definitely now towards renting rather than buying. At the present rate, experts foresee that by 2025 more people will be renting than actually buying property.
The UK Office for National Statistics has released figures showing that presently three million people are renting accommodation in Britain. This is expected to rise over 5 million by 2016. The total value of rental property in the U.K. stands at £1.25 trillion, with 1.9 million investors holding private portfolios worth in the region of £657,726.
According to reports, landlords will be achieving yields of 6% to 8% rental prices this year.
In big cities such as London and Manchester, there is a constant demand for rented property from professional people moving from other countries. They particularly require quality property and unless they are committed to a long future here, would much rather rent than buy.
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