There are numerous factors that make property in the UK a wise investment. Since 1996, average house prices have risen by an extraordinary 281% across the UK according to Nationwide house price index (2016).
As a country with small landmass, an ever-increasing population, coupled with a housing shortage and an increase in single person households, it is clear that the price of homes will continue to increase in the same vein and provide a return on investment for both foreign and domestic investors.
The British property market has long been attractive for foreign investors who are drawn to the UK by a robust legal framework and rising house prices. The UK property market is a benefactor of controlled planning and strict regulations that ensure a degree of legitimacy that cannot be found overseas.
Over the past 20 years residential property has been a lower risk, less volatile and more profitable investment than investing in the whole basket of UK companies. (FT Adviser)
Now is a great time to be a landlord in the UK. The International Trade Secretary confirmed that more than £16 billion of investment in 2016 came from overseas. Additionally, the lag on property building activity seen over the past two decades translates into a housing shortfall keeping prices at an attractive high.
As the UK becomes progressively more crowded, it is set to eclipse the population of Germany in the coming years, despite the fact the UK is three times smaller in size. These two factors present investors with the opportunity to secure long-term investments providing predictable return on investment (ROI) for years to come.
In the last decade, the overall population of the UK has increased by 7% to just over 63 million, this increase alongside the lack of new homes available on the market has created a shortage of ‘Build To Rent’ property. Equally as favourable for potential investors is the increased regulations and borrowing criteria following the financial crisis in 2007, making borrowing harder for first time buyers.
Buy-to-let landlords who have significant capital readily available, can cost effectively invest in one or more properties. In addition, interest rates are at an all time low, with the Bank of England deciding to keep interest rates at a steady, low figure for some time. The decision was also taken to keep interest rates on hold in the aftermath of the brexit vote and recently this continued after the UK general election, ensuring that the investment market continually ripens. It could be said that the equilibrium between the factors mentioned, make current economic climate the perfect time to invest in the UK property market.
Regency Residential’s team of experts, utilise their extensive property expertise to provide international investors with a service that allows them to safely invest capital in properties from overseas without ever stepping foot inside the unit(s). Our Business Development team has a collective 60+ years experience in the property market, with bi-lingual staff that consult around the world on a daily basis. Since launching, Regency Residential has experienced a vast influx of foreign investment, with overseas investors capitalising on the favourable environment the UK market offers to them.