Are you interested in investing your money into UK property but unsure whether now is the right time? This article will outline why now is the optimum opportunity to invest.
Investing in UK property has been a quietly yet incredibly successful way to increase earnings over the last 20 years. It has been regarded as the best-performing asset when comparing it to other investments such a UK shares, cash ISA’s and commercial property.
- House Prices Set To Increase
The United Kingdom is suffering from a serious shortage of housing according to The Office of National Statistics. There will be an annual shortfall of housing in the UK of over 100,000 properties each year for the next decade. This could mean a 1 million housing shortfall by 2025 if current trends continue.
While the government attempts to recover the situation house prices will continue to increase while the supply of properties is still low.
- High Rental Demand = High Returns
A number of factors have continued to push up rental demand including an increase in immigration and more people are living alone. Additionally rising house prices is stopping first time buyers getting onto the property ladder as they are preferring to rent.
This is great news for landlords who are finding that their Buy-to-Let properties are being let extremely quickly while their rental income keeps increasing.
- Best Of Its Kind
Researchers have highlighted Buy-to-Let property as the best-performing asset when comparing its returns to other investments such as UK shares, cash ISA’s, government ISA’s and commercial property.
Since 1996 buy-to-let investors will have achieved returns of over 1,400%. This means that for every £1,000 invested into Buy-to-Let property would be the equivalent to £14,897 today!
- Brexit Impacts
The slump of the British currency due to Brexit has resulted in better value for money for International students meaning the demand for rented accommodation will further increase.
Investors who owned units in Purpose Built Student Accommodation found it was recession proof with returns unaffected by external factors in 2007.
GURU top tip: Make sure to do your own due diligence before you enter into any contractual agreement. You need to be certain that you know the market, the location and returns to ensure that you can make the smart decision.
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