Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Market Insanity

Is UK property still a worthwhile investment?

daniel , , , , , , , , , ,

Amid an uncertain Brexit, you may be wondering whether UK property investment is a profitable market to enter, especially with the recent decrease in the value of London property. However, despite the unknown, property investment is still established as one of the most profitable ventures, as long as you make smart choices.

So, why should you invest in the UK property market? Regardless of the downsides, there are actually a number of reasons why the UK is a great place to invest.  Read these top advantages to help you decide if investing in UK property is right for you.

Location

Despite significant decreases in locations such as London and Bournemouth, which have some of the lowest rental yields in the UK, there are plenty of areas where yields are on the rise. This includes north-west cities Manchester and Liverpool, which have shown a significant spike in property investment and tenant interest.

To ensure your investment is worthwhile you should take time to research which neighbourhoods offer the highest rental yields, and which should offer you a significant amount of capital appreciation. To help you make the right decision, you should discuss your investment plans with property experts like RW Invest who can help you source properties in prime locations in the north-west to help you achieve guaranteed profits.

Long term investment

One of the main advantages of investing in property is it can enable long-term stability, especially if you invest in a property that has consistent demand.

For example, if you invest in Purpose-built student accommodation (PBSA) in a student-populated area, then you are guaranteed to receive regular monthly payments. This type of property is becoming increasingly attractive to investors, as the UK student population continues to increase, so there is always demand for PBSA.

Investing in properties like PBSA or apartments is perfect for investors who are retired or working part-time and are looking for an investment that will provide them with a steady cash-flow. This can be used as your primary income or even for further investment to increase profits and provide you with disposable income which can be utilized for renovations to improve property prospect.

Foreign investors

Due to the ongoing Brexit situation and the weakening of the pound, many overseas investors are focusing their capital on areas in the UK. This includes property developments in Manchester and Liverpool, where economic growth is on the rise, resulting in purchases from Chinese investors and beyond.

In the event of a hard Brexit, the UK property market could flourish with foreign investors becoming more interested in low-cost properties with high rental yields and demand. This is not only ideal for overseas investors but also a great way to improve the issue of undersupplied housing in the UK, where the population is rapidly increasing.

Ongoing property development

Another great reason to invest in UK property is due to the continuous development of UK property.

Alongside, the government’s promise to build 300,000 homes each year until 2023, when hopefully the UK will no longer be undersupplied. This offers a chance to delve into already built properties and off-plan investments. The latter is becoming very popular with investors as they are a cheaper alternative and can offer significant capital appreciation.

There has also been a significant increase in build to rent developments, which are seen as a solution for the housing crisis, especially in struggling areas like London. Build to rent properties are currently being backed by councils across the UK as a way to meet the demand of UK residents who are more interested in renting than buying houses.