Top Reasons to Consider Property Investment in the UK

By in Resource with 0 Comments

Are you planning to invest in property to ensure a stable future by leveraging the full potential of the real estate market? If yes, investing in UK properties would probably be your best bet. Since the 1970s, property prices in the UK have been experiencing a steady growth despite the impacts of the earlier credit crunch, Brexit, and the recent pandemic. In the UK, house prices have seen a faster growth compared to any other European country, according to new research. In reality, home prices have seen a whopping growth of 333% since 1988, which results in average growth of 12.3% each year. Additionally, in the Global Real Estate Transparency Index 2020 by JLL and LaSalle, the UK topped the list.

These statistics clearly indicate that the UK property market is booming and investing here could pave the way for an enviable property portfolio. If you’re still unsure of whether or not investing in UK properties would be an advantageous move, the following section may help make up your mind.

UK property investment: Reviewing the key reasons

Here, we’ve jotted down the top five factors that are making the UK property market one of the most sought-after destinations among property investors.

  1. Rapid growth in population

As revealed by the Office for National Statistics, the population of the UK is predicted to reach 72.4 million by mid-2043. It means, there’ll be a massive housing demand to accommodate that population. The ONS also predicted that by 2050, one-fourth of the UK population will be aged at least 65 or more. This alteration in demographics might prove to be extremely beneficial for property investors. A 2018 report revealed that more than one million people, who are aged over 50, were living in rented houses at that time. Add to this the housing requirements of young professionals, the property investment market in the UK looks really promising.

  • Residential undersupply

Various factors such as growth in immigration, increasing house prices, etc have created an undersupply of housing accommodations in the rental market of the country. While this might be a challenge for people, who’re looking to rent properties, for property investors, it brings a golden opportunity to get attractive returns on their investments. In fact, according to research conducted in 2019, by 2039, there’ll be more renters than homeowners. With the market becoming more competitive, rental prices are bound to increase, which results in higher rental returns.

  • Increasing house prices

With the UK population increasing considerably, the demand for properties will automatically go up. And the rising demand for housing, in turn, will lead to increased house prices. As mentioned by the ONS, for the next decade, there’ll be a shortage of more than 100,000 properties each year. If the present trends continue, by 2025, it could result in a severe shortage of one million housing.

  • Low interest rates

With the base rate of the Bank of England standing at a historic low, surprisingly competitive mortgage rates are being offered by many lenders. It’s essentially attracting more and more property investors to leverage the opportunity. When you consider the steadily increasing monthly rent along with considerably low mortgage payments, the rental income becomes automatically higher. Needless to say, it brings an incredible opportunity to both experienced and new investors planning to invest in UK properties.

  • Reductions to SDLT (Stamp Duty Land Tax)

According to Halifax, which’s one of the leading mortgage lenders in the UK, the average house prices in the country reached a record high in August 2020 with £245,747. This has happened due to the stamp duty cut coupled with the pent-up demand. In its effort to revitalise and safeguard the property market, the UK government announced a temporary stamp duty holiday. This is applicable to all residential property purchases up to £500,000 made between 8th July 2020 and 31st March 2021. And investors, you’re buying additional residential properties like buy-to-let properties or second homes, only need to pay 3% SDLT up to £500k. This initiative helps property investors to enjoy a significant saving on stamp duty. For example, if you’re planning to buy a property having a value of £400,000, you’ll be able to save around £10,000 if the purchase is made before March 31, 2021.

In addition to these, a significant percentage of UK millennials prefer to rent properties. Going forward, if this trend continues, it’ll let the landlords enjoy more security and flexibility.

Summing up

These days, it has become a necessity for investors to identify alternative ways to safeguard their investments. And investing in properties is always considered a preferred and safer form of investment. As the above factors indicate, you’ll be able to secure your assets by investing in UK properties. If you plan to invest in buy-to-let properties, it’d help you enjoy multiple rewards – a regular monthly rental income and capital appreciation in case you want to sell them in the future. Just be sure to conduct sufficient research before making any investment and partner with a reputable property management company to get valuable insights into your shortlisted properties.

Share This

Reserving Your Property

What Are The Steps?

1. One of our dedicated consultants will contact you to discuss your new property purchase and answer any questions you may have.

2. We send you our Non-Disclosure & Non-Circumvent Agreement and Finders Fee Agreement for you to sign. These standard agreements protect all parties involved from disclosing confidential information about the vendors and the deal or contacting them directly.

3. You Pay your Finders Fee. We understand that you may feel uncomfortable paying your Fee at this stage, but this Fee is fully refundable and gives you exclusivity to the deal so that no other buyer can access it.

4. We arrange for you to go and view the property. We believe it is important that you or your representative view the property you are about to purchase to make sure that it is the right fit. We ask that you make yourself available to view the property promptly as most of the vendors are looking for a quick sale and require speed and certainty.

5. After viewing the property, we will discuss your feedback. You decide whether you wish to proceed with the purchase/ rental.

6. If you wish to proceed, that’s fantastic. We will send you a Purchase Agreement and request some basic information: Full name and address of the buyer, proof of I.D, address, and solicitor details etc.

7. If you do not wish to proceed, that’s ok too. We will refund 100% of your Finders Fee. You email [email protected], and we will ensure a full refund within 48 hours of your email.

Sourcers Info

1. Upload Your Property to our Portal

After you have created your User Account, you can proceed to upload your property deals.

2. Assessing your deal

One of our Support Team will review and assess your property and will call you to finalise the details if required.

For us to assess and publish  your property, you will need to upload:

Full Address
Pictures of the property
Videos if available
Comparables of similar properties sold in the area and for sale
Rental comparables

If we are happy with everything, we will publish your property live on our site for waiting buyers to access.

3. Prospective Buyer

As soon as your listing is live, our buyers will be able to view the property details and contact us to reserve your property. Our Support Team will speak with the buyer to formally reserve the property and arrange a viewing. We will liaise with you to fix the most convenient time with the vendor for viewing.  There is a better prospect of agreeing on a sale if the buyer views the property quickly, so we ask that you are flexible & prompt with the viewing arrangements.  

4. Completing Your Sale

Once the buyer has agreed to purchase your property, our team will manage the process until completion. We are available to assist with all matters to get the deal closed as quickly as possible. 

We are available by email: [email protected]

We are transparent about our fees, and we split the Finders Fee on a 50/50 basis on properties sold.