Benefits Of UK Property Investment
Finding a new investment is never as easy as it may appear for many investors. Investment endeavours are usually meant for the long haul and usually come with a lot of risk, which is why you need to make the right choice from the beginning. However, property investment is more lucrative than any other venture since it appreciates and that is quite promising. Due to this fact, investors continue to put their cash in bricks and mortar because the stats show it’s a viable investment. UK property investment in particular, has attracted a lot of attention globally despite the uncertainty of the Brexit negotiations. Benefits of UK property investment include:
House Price Growth
The main reason for any investment is the profits you will make afterwards. With the rise of regional hotspots like Manchester and Liverpool, it’s predicted that there will be a 14.2% average increase in house price growth in the next five years. While the growth might be suffering in some parts of the country like London, hotspot areas are thriving, which is why investing wisely in the UK property market can make you some serious quid. With major projects happening in these regions, the house price growth is bound to rise in these new vibrant neighbourhoods. As an investor, you should be on the lookout for a property that’s most likely to reap the best yield.
Housing Shortage And Growing Demand
The simple law of economics come into play here in that as long as there is high demand in rental properties, then your investment is most likely to bear fruit. In the UK property market, there’s an alarming clear gap between demand and supply. Due to this housing crisis in the UK, the government has vowed to build 500,000+ new homes by the mid-2020s to meet the demand. So for any foreign or local investors, investing and securing assets in the UK now may be the most opportune time. It doesn’t get any better than that given that supply is lower than the demand.
High Rental Yields
Rental yields are a pretty sensitive issue when it comes to buying an investment property considering how some places are different from others. Manchester, Nottingham, Liverpool and Leeds are some of the top cities with high yields when it comes to rentals. These cities are also home top universities in the country which necessitates student accommodation, which is a massive driving force behind high rental yields.
The Northern Powerhouse
In 2016, the Northern Powerhouse Partnership was set up to increase the contribution and impact of the North towards the economy. Initiatives like the Square Kilometer Array and the High Speed 2 rail line are already in place, which will ultimately result in the creation of jobs and economic growth. The prevailing conditions in the economy make it an ideal time to invest in UK property.
The UK property market has proven to be resilient in the past and will remain to be strong regardless of the political turmoil in Westminster. So keeping faith in the UK market can reap huge rewards for you once the dust settles down.