When you think about the word ‘investing’, the first thing your mind probably conjures up is most likely that of a greasy Wall Street trader in a pinstripe suit babbling about stocks and percentages and illegal substances.
Or perhaps, an equally greasy teenager, hunched over his laptop making millions with coins that don’t even really properly exist?
You might be thinking that property investment is a bit old fashioned? Maybe, not as lucrative? Even more complex than those other options to break into?
Well, whilst it’s by no means the ‘easy option’, if you’re smart and know what you’re doing, property investment can be a very lucrative opportunity indeed, especially when considering the best places to buy to let in the UK. If you’re curious about these opportunities, browse around here.
Specifically, the UK property market is something that could be particularly attractive for any would-be investor.
Here’s a handy guide outlining why you should explore UK property investment opportunities to get you started.
Table of Contents
It has largely avoided the harmful effects of lockdown(s).
Apologies for bringing it up – you’re probably tired of hearing about it by now – but the COVID-19 pandemic has undoubtedly changed the way we live.
However, despite maybe predicting otherwise, the UK property market has mostly come out of the various lockdowns and restrictions relatively unscathed – in fact, it’s had an almost historic rise.
In 2020, the market saw record-breaking increases, and there are essentially no signs of it slowing down.
For example, the May 2021 house price data from the Land Registry valued the average UK home at around £254,624, an increase of 9.98% in the last 12 months alone.
Considering that the UK suffered the largest economic output drop in 300 years last year due to pandemic/lockdown related issues, this is no small feat.
In fact, even if you consider the pressures of Brexit alongside this, property prices have increased by over £43k in total since 2016.
And, to put a cherry on top, this growth is expected to continue well into the future.
The latest predictions from property group Savills propose that UK property is likely to rise in price by a further 21.5% in the next five years.
Regeneration efforts are improving cities (and investments).
A massive part of all this growth has unarguably been the level of regenerative work seen in the UK as of late.
Essentially, these projects are so attractive because they increase the quality of a location and provide new job opportunities and adding/improving local amenities like transport and shopping.
With property prices stagnating in London and an increasing number of investors and professionals beginning to look elsewhere, cities become promising alternatives to the capital city.
All in all, it’s a promising factor that cannot be ignored when looking to invest.
There’re more people, and they need to be put somewhere.
In the next 20 years, the population of the UK alone is expected to reach around 74 million.
They’re going to need somewhere to hang up their socks, and the property market will be ready to deliver.
For those looking to invest for the future, you can sleep well tonight – Generation Rent is here to stay.
Typically used in reference to 18 to 34-year-olds, these are the generation of younger people that have no choice to rent, as the rising costs of new homes are too expensive for them to keep up.
However, it is also steadily becoming a more popular lifestyle choice in general – with studies predicting over one-third of those aged 60-and-above becoming private renters by 2040 due to an increase in divorce and (again) high house prices.
While this may seem a bit depressing, it means a steady influx of tenants far into the future for those looking to buy an investment property.
Someone will be happy then, at least.
Is UK property a good investment in the next year?
Now, these are just some of the reasons why UK property investment is so beneficial, and rather than continuing to babble on, let’s answer the obvious question:
Should you invest in UK property right now?
The short answer: Yes
But if you’d like a slightly longer one: Now more than ever is probably the perfect time to look into investing in UK property. With property prices only going to continue to rise in the foreseeable future and there being no conclusive evidence of it stopping any time soon, this is probably the most affordable it’s going to be.
As with any venture, it’s important to research your options!
Study the property market, listen to the experts, perhaps even consult with a property company to help you consider the best options.