Nobody can deny that the past year has been a troubling one. Between lockdowns, quarantines, and self-test kits, it seems like life has constantly seen some kind of disturbance. With all of this in mind, it is entirely understandable that property investment has not been a huge concern for many. However, now more than ever, it may just be the perfect opportunity to consider getting involved.
1. The UK is rather trustworthy (when it comes to property)
The 2020 Global Real Estate Transparency Index by JLL named the UK the “most transparent” market globally. According to their definition, the top markets are some of the “world’s leading investment destinations” and push the boundaries of openness through technology, sustainability, regulation, and tracking of alternative sectors.
Pretty high praise.
2. Surprisingly, property investment has largely avoided the harmful effects of lockdown
Whilst it may have been presumed that the UK property market, like many other sectors of the economy, would be impacted by the turbulent effects of the pandemic, it has, in fact, seen a more optimistic outcome.
Despite various experts predicting dire consequences, 2020 saw record-breaking rises for the housing market, and it’s showing no signs of slowing down.
This December, Rightmove predicted house price growth of around 4% in 2021, referring to the aftermath of the lockdowns as a motivating factor for prospective buyers. The idea is that having spent the majority of their time stuck inside last year, UK homeowners will be desperate to move to more extensive accommodation, a trend that will, in their words, easily “outweigh” any uncertainties.
3. Regeneration in the UK
Regional UK cities are currently thriving. Take a look at Luton property investment, and you’ll see a prime example of this. With London prices rapidly increasing over the last decade, investors have started to look beyond the capital city for more promising alternatives. Developments like Crossrail (supposedly revolutionary in terms of connectivity for residents) and amenity-led projects providing residential, commercial, and efficient mixed-use spaces are particularly desirable. This is due to efforts such as these being able to directly impact public opinion, demand, and in turn, property prices. Keep the people happy, and apparently, the numbers will be too
4. A rapid increase in population is seeing a greater property demand
The UK’s population is predicted to reach around 74 million people in the next 20 years. With more people bouncing around, there’s a greater need for properties to house them. Simply, it’s clear that there is an ever-growing call for more housing within the market.
5. Forecasts also expect a significant total price growth across the next five years
Just as the rising price growth spilled over from 2020 to 2021, a similar effect is expected to continue across the coming five years. According to Savills, UK property is likely to rise in price by 21.1%, meaning the average house will increase from £230,920 to £279,644.
With markets furthest from London reaping the strongest yield from this growth (the Northwest with an estimate of +28.8%, for example), for those looking to invest in the UK, this is a solid opportunity to potentially start building excellent capital growth whilst also generating consistent rental returns.
Demand for UK property is rife and, with no hint of stagnation on the horizon, this could be the perfect time to get stuck in and start investing.