1. Variety of Options
London Metro Area. The Northwest. East Midlands. Scotland. The UK boasts a wide variety of property that is often overshadowed by exorbitant prices in posh residential neighborhoods.
In fact, the laws of supply and demand give investors options from houses in Durham for under £ 60,000 pounds to an extravagant £ 13 million pound home in Belgravia. In other words, you can break into the market with under $100,000 USD.
This variation among asset classes means different ROIs based on your risk profile and long-term goal. For example, Even in the famously expensive London market, there is a wide variety of prices.
2. Extensive Transport Infrastructure
With over 70 airports, 40 major ports, excellent rail links, and toll-free motorways, the UK offers residents strong transport links. The connection between suburban and rural areas rank high among EU members and are only strengthening. On top of domestic railway lines, Eurostar also links the UK to the rest of Europe.
In May 2021, the Transport Minister has revealed plans to inject £401 million pounds into transport infrastructure. New stations will be built along the northern Transpennine route, especially between Leeds, Manchester, and York, along with upgrades between York and Church Fenton.
The respective locations’ real estate prices will mushroom as the investments in infrastructure are realized over the next few years, and have already seen surges in market energy.
3. Post-Covid Bounceback
Despite a new stamp duty for non-residents, property firm Strutt and Parker is predicting higher transaction volumes than last year. In fact, they have released a five-year forecast which estimates up to 35% growth.
On top of that, Prime Central London’s lettings have seen a YoY decline of -6.7%, compared to a worst-case prediction of -10%. While market indicators do not match pre-Covid peaks, they indicate a slow return that still offers an opportunity for investors to break in.
The sector can see continued government support through planning system reforms and increasing demand for new-builds between homebuyers and investors.
4. Strong International Community
The UK and its popular metro areas have consistently attracted foreigners. So much so, that King’s College research shows foreign investment is responsible for prices being 3 times higher than they otherwise would be.
The country is home to millions of immigrants and is often the primary choice of investors due to its high level of internationality. In fact, only 20% of investment volume is purchased by UK citizens. In the same 2021 JLL market report, the research breaks down the purchaser nationality into the following percentages:
- USA: 36%
- UK 20%
- Hong Kong: 12%
- Czech Republic: 10%
- Germany: 10%
- China: 4%
- Other: 7%
The markets of the “new normal” are on a shaky recovery, though still offer plenty of options for professionals to invest their hard-earned cash. Going forward, policy changes in EU relations or stamp duty is sure to impact property prices, and our future publications will keep you up to date on property trends to be aware of in the UK.
Now that you’re here…
At Denzity, we help international investors find their next property. If you have any questions about your next purchase, reach out to our team, here. Stay tuned for more location-based articles, investor focused content, and listings from our clients.