Key Stats UK Real Estate Market
have emerged as prime investment destinations with higher rental yields and tenant demand.
Birmingham has been the top performer for property price growth within the UK.
Worth of rental properties with five million rental homes in the UK property market
How is the UK Real Estate Market Performing?
Latest reports show that house prices are still increasing around the UK, despite economic concerns, especially within regional cores that are also seeing increasing demand due to high property prices in London. Recent reports from Hometrack have shown growth in Edinburgh, Birmingham, Manchester and Glasgow are surpassing 7% year on year, with the UK as a whole achieving 4.4% growth on average.
As a property investor, all of this means there is still significant potential for capital growth and high rental yields. The UK is still growing, despite the uncertainty surrounding Brexit, and whilst there has been a shift in focus on residential property in the London, cities and areas of the UK that may have been overlooked now present potentially lucrative opportunities.
15 Year Growth Plan
Historically, we can see that within a long-term strategy over 15 years, property has the potential to double in value while providing consistent yields. This is why planning for long-term rental yield growth can be so important for achieving financial goals. The longer the property is held the more income can be accrued, supplemented by natural market growth in total value.
How long you typically hold your investment for and what yields you need in the short, mid and long-term will be down to your individual goals and circumstances. Typically, investors will want to hold on to the property for as long as possible to maximise returns while building equity. In our previous example, 15 years as a timeframe ensures the investment has time to ‘breathe’, maximising the performance of both income streams while offering ample opportunity to expand or consolidate.
Where to invest in UK Property?
London and the London Commuter Belt
Slough – The UK’s Commercial Hub
Crossrail is set to be a game changer in the South East for access in and out of London. Since its launch in 2009 house prices within a mile radius of planned stations have seen an increase in value by 66% on average.
Bracknell – The UK’s Silicon Valley
Bracknell should be on the radar of every investor thanks to the large-scale regeneration and global technology firms that are driving professional tenant demand. Directly linked with the capital, Heathrow Airport and other key destinations around the South East, Bracknell is a prime commuter location that has a lot to offer working professionals looking for a thriving and affordable market.
Best Performing: Birmingham
The UK’s second city ranks as one of the most popular in Europe in which to invest – higher than London – and is currently attracting £billions of investment into citywide infrastructure projects, retail, commercial and residential space.
Global businesses such as HSBC, Deutsche Bank and PwC are choosing to relocate their headquarters to Birmingham with the city also demonstrating its global appeal by winning the bid to host the 2022 Commonwealth Games.
Birmingham is also home to the largest professional services hub outside of London, demanding the attention of both domestic and foreign investors that are looking to expand and take advantage of a much wider client base.
3 Steps For Your UK Investment
for International Real Estate Investors with SevenCapital
Book a Face-to-face Strategy Meeting
With our local international experts to discover the right investment for you
Reserve Your Property Unit
Then use our Tax specialists, Overseas Mortgage and Foreign Exchange Services available
Customer Care Turn-key Solution
Receive supported aftercare and property management services with our 360 Customer Services
UK Property Tax for Overseas Investors
The UK’s property market is one of the most mature and proven markets in the world. It’s important to understand how the tax system impacts you when buying from abroad.
The 4 main taxes you will experience when investing in UK real estate from overseas are:
- Tax On Purchase – SDLT
- Tax During Ownership – Income Tax
- Tax On Sale – Capital Gains Tax
- Tax On Death – Inheritance Tax (IHT)
How has Brexit effected UK Real Estate?
Despite the uncertainty surrounding Brexit, the UK looks set to maintain its position as a leading investment market for international buyers.
In a recent survey by Knight Frank of 155 leading property investors, 21% of the respondents said the UK was their preferred investment market, up from 11% the year before. This is excellent news for a market that remains robust despite the political shifts over the last two years. The UK is still recognised as a strong overseas investment target, with the primary reasons for investing in the UK being potential rental yields (43%) followed by its stability (32%).
For the UK, undersupply highlights a much more pressing issue. Over half of the surveyed investors (55%) in Knight Frank’s research identified their main challenge as ‘lack of stock’ when investing in the UK, with only 15% citing geopolitical uncertainty as a constraint. These statistics all demonstrate the strength of the UK’s investment potential right now. Opportunities available are still attractive, particularly in regions that are driving new investment and redevelopment.
I was recommended through a friend for investment purposes. Really happy with SevenCapital and the apartment.
Overall experience good, bathroom spec is good and lovely windows. Overall impressed.