For a long time, investing in property in the UK has been attractive and secure for people living abroad. In recent years, the changes that followed the 2008 global economic crisis made things even better for investors from abroad. The numbers defining the real estate field in the UK are good as about 25% of the citizens under 40 years renting property. However, note that these numbers do not define a perfect scenario, and it is essential to conduct your homework well before making the leap. Here are some of the benefits to UK property investment;
Increase in Prices in the Long Run
The UK is one of the places that has a history of appreciating prices in the real estate field. The recent market instabilities led to a few hiccups in the prices of units, but things have steadied over the past few years. This way, you are almost guaranteed to make some return on investment when you decide to buy property in the UK, be it for rental purposes, or to sell at a future date. Note that the rate of increase in the price of property in the UK depends on the area and conduct some homework to determine which is the most favorable region.
Significant Rental Returns
Rental yields are one of the things you should look at when investing in property. These amounts vary significantly depending on the type of property and prevalent market conditions. Several cities in the UK have a good track record for bringing in attractive rental yields. Liverpool, Manchester, Leeds, and Nottingham top the list with returns of about 5.05 %. These top cities host some of the best universities in the world, and the large student population is the reason behind the impressive rental figures. If you invest in property in the UK well, you are assured of good returns on your investment.
Increase in Demand
One of the last things that makes investment in property in the UK successful is the high level of demand for rental units. In the UK, the gap between the supply of rental property and its demand is, vast and tenants keep on increasing in number with the properties available falling short. Projections in the real estate field have indicated that by 2023, the rental costs in the UK will have increased by about 15 percent. These numbers are favorable for anyone who wants to invest in property since they are assured of getting more returns as time goes by. The northwest part of the country has noticed a massive influx of people since they are assured of getting good rental places at a fraction of the cost they would have paid in London. Investors are advised to look at these areas when seeking a favorable place to channel their money in.
Some of the reasons why you should consider investing in property in the UK have been mentioned above. Note that investing in real estate is not as straightforward as you think, and you have to do the due diligence before settling on a particular investment. The tax laws and procedures might differ from what you are used to and ensure that you are familiar with them to avoid any pitfalls along the way.