Why Invest in UK Property?
Is the UK still a good place to invest? After the challenges of Brexit and the global pandemic, we’re exploring why you should invest in UK property – looking at how low interest rates, the Stamp Duty holiday, mortgage availability and exceptional growth forecasts for regional areas are impacting the UK market in 2021.
As demand reaches an all-time high and supply continues to dwindle in major cities, there’s never been a better time to invest in the UK from overseas, with plenty of opportunity to add prime, ‘hands-off’ developments to your property portfolio.
At the same time, key regional areas such as Birmingham and the South East continue to forecast excellent capital and rental growth, with property price increases reaching highs of 19.5% in the UK’s second city. See why you should invest in UK property today.
Download the 2021 UK Investment Guide
Investing in UK real estate from overseas? You need the complete guide to all things UK property investment.
In the 2021 UK Property Investment Guide you will find:
- Current market performance
- Forecasts for the UK property market in 2021
- Updates on UK currency
- What will life look like after Coronavirus
- How will UK property deal with the Brexit transition
Where Should You Invest in the UK?
The question that is on every investors mind right now is surely, where should I invest in the UK as the property boom continues to reach new heights?
Every region in the country recorded a rise in house prices in September according to the most recent RICS survey – hitting an 18-year high. At the same time, demand continues to rise with seemingly no end in sight, driven by changing priorities for homeowners and the stamp duty holiday introduced by the government.
This means that heading into 2021, there are a number of UK Buy-to-Let hotspots now vying for the spotlight. As regional cores continue to surge ahead of traditionally popular markets, we’re examining the question: what are the top 10 best places to invest in UK property in 2021?
New Developments in the UK
UK Property Tax for Overseas Investors
The UK property market remains a popular choice with overseas buyers thanks to the stability and potential for incredible returns that it can deliver investors.
This means that for many overseas investors, it’s important to understand how the tax system impacts international buyers. From stamp duty to the additional surcharge that may be entering the market, it’s important to understand these to work out your returns in the long-term.
If you’re investing in UK real estate from overseas, here we run through UK property tax you may need to know, though we advise any investor to seek specialist advice on any property tax matters.
3 Steps For Your UK Investment
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How has Brexit effected UK Real Estate?
With a finalised deal in place and some certainty returned to the market, 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 they were investing in UK real estate from overseas, up from 11% the year before. This is excellent news for a market that remains robust despite the political shifts over the last four 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.
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.