Property investment is probably one of the most reliable methods of securing steady, consistent income.
Offering a solid long-term investment, it can often be a particularly lucrative venture – providing you have some idea of what you’re doing.
A good sign, though, if you’re considering UK property investment, in particular, is that now more than ever, it may just be the perfect opportunity to consider getting involved.
So if you’re looking for a property investment guide, then read on to learn everything you need to know to get the most out of your investment!
Rent and Rental Yields Are on The Rise!
In October 2022, the average rent in the UK rose to almost £1,170 – a 10.6% increase from last year.
Excluding London properties, the average UK rent price is around 10% higher than last year, up to £976 per month.
This has led to some excellent yields in the country, with cities like Liverpool seeing returns of over 10% in certain postcodes.
On the whole, these are some rather impressive yields and are, in some cases, higher than any of those in other countries.
For example, take a look at Shanghai (another top investment hotspot), and you’ll only see an average rental profit of around 6-7% in comparison.
The cost of living crisis in the UK may slightly dampen this growth in the future, but it is important to note that the property market is likely one of the most stable and growing markets in the UK at the moment.
Capital Growth is On the Rise, Despite Some Turbulence
As mentioned, the UK market is currently performing quite well – even throughout some difficult times (most notably the falling rate of the GBP in September 2022).
This effect on the economic climate even proved to have some positive outcomes for investors – especially for those overseas.
With the rate of the pound falling, foreign currencies could bring foreign investors more value for their money, with currencies like the EUR or USD worth much more in comparison and making property in the UK a cheaper asset to acquire.
The housing market is renowned for remaining relatively stable amidst any economic turmoil.
As it is a physical asset, property grows in value over time – which makes it particularly profitable in these periods.
This year, house prices in the UK have increased at some of the highest levels recorded – as a result of supplies being unable to meet the skyrocketing demand.
The latest forecasts depict that this will continue well into the next five years.
Specifically, the North West, in particular, is predicted to see the most notable growth, with expected rates of 11.7% by the end of 2027.
This is excellent news, especially considering that capital appreciation is one of property investment’s biggest selling points.
If you’re patient and find the right property, you can rent it out for a number of years and then sell it later for a massive profit well above the initial buying price.
You Won’t Have to Look Far to Find Any Tenants – Demand is Skyrocketing
Properties in the UK are flying off the shelves at a massive rate – all because there is not enough to go around.
As mentioned, this has led to higher prices for property, but also more tenants looking to rent instead of facing the costs of going alone and buying a house for themselves.
With demand so high, this is fantastic for any investors because there will be a steady stream of potential residents to populate (and pay rent for) their properties for a long time to come.
So, Should You Invest in UK Property?
There may be some slight bias, but – so long as you have the means and know-how – yes, you should consider getting involved with UK property investment.
The market is most likely one of the most potentially profitable (and growing) ventures to get stuck in with at the moment – for UK and foreign investors alike.
As the rate of growth stays healthy for the foreseeable future, barring any surprise market collapses, this period is probably the best point to get involved.
It is, however, essential to remember that this guide serves as just an introductory welcome to the investment process.
You will need to do your research and perhaps consult with an expert property company to get all you can from an investment!