The Benefits of Investing in UK Property

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Investors from all over the world are recognising the potential of the UK’s property market. With a number of UK cities offering fantastic potential for buy to let investors, house prices that have soared by a massive 306% in the last 20 years. With house prices expected to grow by 2020, now is the perfect time to take the plunge into a property investment venture. To make everything a bit clearer, here’s a handy guide outlining some of the key benefits of investing in UK property.

There’s a lot of demand

Demand for property in the UK is increasingly high in several UK cities. In August 2018, the demand for rental properties around the UK had risen at its highest level of the year, with fewer homes available for rent. Property hotspots like Liverpool and Manchester have seen demand for high-quality property from both students and young professionals, with Liverpool, in particular, boasting the fastest growing city centre population. Liverpool has a student population of over 70,000, whilst Manchester’s student population reaches heights of around 99,000, with more students from both the UK and overseas heading to study in the world-class institutions. Research suggests that up to one-third of millennials are expected to be renting for the rest of their lives, providing a steady stream of demand for buy to let property.

Rental yields are high

Cities in the UK have some of the best rental yields compared to other European countries, having outranked France and Sweden. Manchester has an average rental yield of 5.55%, with some areas of the city offering impressive yields as high as 10.08%. The high rental yields in UK property hotspots are down to the affordability of the properties and rising rental rates. One property type which is particularly affordable is student accommodation, and with a lot of UK students being willing to spend more money on quality accommodation that stands out above the rest. Tenants in the UK are generally prepared to pay more on high-quality properties such as those from RW Invest, who offer new build apartments and student accommodation in prime UK locations, which provide investors with lucrative rental yields.

Capital growth is strong

According to the Nationwide house price index, buy to let investors in the UK earned around £14,987 for every £1000 that they invested  20 years ago – an incredible return on investment. Whilst property prices in the UK can be affordable in some areas, house prices are also continuing to grow, which means investors can expect a large degree of capital appreciation. Regeneration projects around the UK are also contributing to this, with big plans in place in Manchester such as new city centre neighbourhood of St Johns, new skyscraper buildings, and transportation under the Northern Powerhouse initiative set to improve massively. Other regeneration projects include Liverpool Waters which will completely transform Liverpool’s waterfront and attract more people to live and work in the city, along with bringing plenty of interest and boosting the economy.

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