The UK property market has long been regarded as a secure and stable investment for both local and international investors. Property investment is a lucrative industry that poses a great opportunity for anyone who wants to get returns on their money. Over the past few decades, in particular, the popularity of buy to let has had additional exposure due to market growth.
Those who see the benefits of UK property can reap both financial and personal rewards, and this is down to the UK market being flooded with new opportunities all the time. If you’re unsure about investing in UK property and want some encouragement on why it’s a good idea, keep reading as we list the reasons why investors continually choose the UK for their investment ventures.
- The UK is a strong investment choice
For multiple reasons, the UK is one of the strongest investment choices when looking at the country as a whole. The UK has seen a rise in investors internationally, especially from the likes of Dubai and the Middle East, due to the high potential to earn returns from their investment. Plus, the UK market looks as though the future is bright in terms of going forward. Previously the UK has had significant growth in property prices, and this is predicted to continue for many years to come. Now is one of the best times to get stuck into the market as the prices are still low, but returns are going to be fruitful.
- UK interest rates are extremely low
The Bank of England has a base rate of 0.75%, but there is other competitive buy to let mortgage lenders who are happier to go lower than this depending on the upfront cash available and how reliable you are as a lender. Given that mortgage debt is so low for those investing in UK property, this is an excellent opportunity for investors to finance their property portfolio without having the upfront investment required beforehand. However, keep in mind if you’re an international investor, you will have different rates of interest and may be subject to larger interest rates due to being outside of the UK. Despite this, it’s still worth looking at UK property for a number of other reasons.
- Many cities in the UK have high average rental yields
In recent years, the UK has seen cities grow significantly, and average rental yields skyrocket with investors enjoying large amounts of rental income from their properties. According to RWinvest, the best performing cities in the UK include; Liverpool, Manchester and Sheffield. These three cities and many others across the country have rental yields to shout about with highs of 10%.
However, as an international investor looking at UK property, you should be aware that not all cities are created equally when it comes to rental yields and capital appreciation. International investors can become entangled in a web of investments down in bigger cities like London and Birmingham where properties don’t offer the high yields they do up North. This is why it’s essential to do as much research as possible before jumping into your investment, just to ensure you get the best price and can reap the rewards you deserve.
