Thinking about investing in property but not sure which area to make your investment? The UK is growing increasingly popular for property investments, with England boasting one of the best property markets of any European country. Overseas investment into the UK property market hit a record figure of £30.8 billion in 2017, with UK investment, excluding London, rising by 60 per cent year on year. With excellent growth prospects and a lot of potential in many regions, investment into the UK market is set to continue over the coming years. If you’re considering investing in the UK market, here are some reasons to choose the UK for your 2019 venture.
The rental yields are high
In certain UK regions, the average rental yields for buy to let investors are higher than in many other worldwide locations. The north-west region, home to key cities Liverpool and Manchester, comes out top for rental yields. Liverpool, for instance, boasts an average rental yield of 5.05 per cent, while Manchester yields reach even higher at 5.55 per cent on average. These rental yields become even more attractive when you look at specific areas of each city, with some postcodes in Liverpool offering yields as high as 11.79 per cent. While these UK cities present good prospects when it comes to rental yields, however, some UK areas like London aren’t as positive. Rental yields in London reach an average of 3.05 per cent, highlighting the importance of property research into the different UK areas.
House prices are rising
Despite Brexit uncertainty as of late, house prices in the UK are massively increasing. House prices in the UK are expected to grow massively over the next five years, with the north-west region showing particularly attractive rates of growth. North-west house prices are predicted to exceed any other UK area, with an 18.1 per cent boom set to hit the region by 2022. Those keen to invest in the UK should do so soon to take advantage of these rising property prices. These figures mean that those investing in buy to let property will benefit from a strong return on investment from both rental yields and capital growth when you choose to sell the property.
There’s lots of demand
With a significant gap between supply and demand for rental properties in the UK, the levels of demand from tenants are increasing. Students and young professionals are some of the most popular types of tenant that are causing these rates of demand. With a number of UK cities like Liverpool, Manchester and Leeds boasting huge student populations, student accommodation is one of the most in-demand property types, making it such a popular buy to let venture. Today, students in the UK are drawn to a more luxury, high-end style of accommodation, with amenities like high-speed internet and proximity to the city centre. Similarly, young professionals favour renting apartments with a more luxury edge and that are close to their workplace and the main attractions of the city. This leaves the potential for some impressive returns from these type of property investments, attracting desirable tenants who are often more prepared to pay higher rental costs for quality property. RW Invest, a UK property investment company, offers modern city-centre apartments in key UK areas, tailored to young professional and student tenants.
It’s easier to invest
The UK has a good reputation when it comes to overseas investments. Foreign investment in the UK property market is a lot easier than it is in other countries like Switzerland and Germany. Unlike these countries, the UK doesn’t have certain restrictions in place that make investing more difficult for those from overseas. Investors into the UK property market also benefit from a corporate tax rate of just 19 per cent — one of the lowest rates.