3 Key benefits to property investment in the UK

Despite the previous credit crunch, Brexit, and a global pandemic, the UK property market has proven resilient. Since the 1970’s property prices in the UK have continually risen at a steady rate. According to research by the Guardian this trend is set to continue and reach record levels.

Their study also shows that the average prices of property have increased to over £245,000.

New projects are occurring all over the UK. Regeneration is playing a significant role behind the price increase.

Rental prices in the North are actually exceeding prices in the capital thanks to this regeneration.

3 Key benefits to consider:

Return on investment is high

For investors, the property market is one of the easiest ways to make significant returns on investment. Annual returns can reach over 10% in some areas of the UK within the buy to let sector. Investing in the key hot spot areas of the UK mean you will benefit from high return yields as part of a long-term plan.

More young individuals such as students and young working professionals are looking to rent due to increased mortgage limitations for first time buyers. Unemployment is also set to rise which will drive rental demand even higher. This will provide great rental returns on investment.

Regeneration

There are higher rental returns in the North compared to those in London. So it is only logical that investors are now moving their money out of the capital. The capital was historically favoured as it was the main social hub of the UK meaning it was in high demand. But with increased regeneration in the North, the gap is closing.

Regional cities such as Liverpool and Manchester have had some of the best regeneration projects around the UK with many more set to take place in the near future.

Manchester is highly regarded as it is in high demand from new businesses. Manchester is now being considered the ‘London of the North’.

A sustainable and secure asset

As we are in an uncertain and unstable time, the stock market has taken a hit. Investors are now looking for safer industries to invest in. Options of investment, such as property, have become a tangible asset due to its ability to stay stable in unprecedented times.

As rental prices grow and house prices are increasing year on year, buy to let is vastly considered to be the most favourable form of property investment. Buy to let provides investors with both income monthly from rent but also strong capital appreciation when the time comes to sell the property.

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