20 Reasons to Invest in the UK Property Market Now

If you are looking to invest in property, you are going to be glad to know that rental prices are growing. There is a demand in the renting market due to there being a residential undersupply, as well as people wanting to enjoy the regeneration that is happening in many cities. Rental prices will be higher where you can deliver quality accommodation.

Indeed, rental prices have increased in the South East, according to the 2020 UK Property Market Forecast. There has been a prediction of an 11.5 percent rise in prices over the next four years. This is also shown by other major cities in the UK. For instance, Birmingham is predicting an even better rise in prices for investors. In the years leading up to 2023, there is said to be around a 12.5 percent rise in rent prices.

Of course, London has always been a fantastic place to invest. But property regeneration is taking off over the country and this means other major cities are appealing to investors. This includes Manchester, Leeds and Birmingham. Indeed, London prices have jumped in recent years and this can make property in other cities more affordable and profitable. Plus, property has become more appealing with better transport and connectivity.

Take Birmingham as an example. In the last 10 years, this city has been dramatically improved and regenerated. There has been a huge £500 million redevelopment at New Street Station, as well as £150 million being put into Grand Central shopping, making the area more attractive. There are also other developments in the works, including Paradise and Arena Central underway. There is even the HS2 development coming in 2031 worth £1 billion.

In the UK, generation rent is currently happening. In other words, younger people are unable to purchase their own properties and they are turning to renting. This is good news for property investors and it gives you the opportunity to build a portfolio. The Resolution Foundation state that 4 out of 10 younger people are renting their homes up to the age of 30. In addition, older adults are also predicted to be renting when they get to retirement.

Indeed, more people are renting. This is something that is seen more in Europe and the same concept is making its way across to the UK. For instance, around 43 percent in people own property in Germany, compared to the majority that is renting. This may be the trend that the UK is following in the future.

After the 2009 financial crash, many thought that the property market would be adversely affected by a nationwide lockdown. However, although there were lower transaction volumes, a lot of PLCs are optimistic and forecasts are looking positive.

Despite the pandemic disrupting a lot of ways businesses operate, the rental market has managed to successfully adjust. For instance, most letting agents have managed to adapt their way of working in order to still provide viewings in a safe way for everyone. In particular, there was a 30 percent increase in people wanting to rent at the beginning of April 2020. This included 86 percent of renters and buyers wanting to go ahead with the property moves they had envisaged before lockdown.

After the 2009 financial crash, many thought that the property market would be adversely affected by a nationwide lockdown. However, although there were lower transaction volumes, a lot of PLCs are optimistic and forecasts are looking positive.

Despite the pandemic disrupting a lot of ways businesses operate, the rental market has managed to successfully adjust. For instance, most letting agents have managed to adapt their way of working in order to still provide viewings in a safe way for everyone. In particular, there was a 30 percent increase in people wanting to rent at the beginning of April 2020. This included 86 percent of renters and buyers wanting to go ahead with the property moves they had envisaged before lockdown.

You will find that the technology sector in the UK is very strong. In fact, it has been said to be one of the best in the world. In particular, the growth of the tech sector UK is beneficial for the economy and for encouraging PropTech innovation.

There has been a lot of venture capital investment, including £6 billion during 2018. This was the largest figure for any country in Europe. Indeed, this success continued the next year and beat 2018 figures after only seven months. Additionally, the UK enjoyed more investment per capita than the United States.

Over the next few years, the results of infrastructure projects will start to take shape. In other words, the UK will see better transport links, quality amenities and more employment opportunities emerging throughout the country. This is going to have a direct and positive effect on the property market for an investor.

For instance, the Crossrail line that is under development in the South East allows better transport links to London. Interestingly, those properties that are within one mile from the announced stations have noticed a significant interest in value. This is up to 66 percent, which will please investors.

It is likely that the same situation will occur in the Midlands with HS2, with better transport links from Birmingham to London. In particular, the infrastructure project will bring 25,000 new jobs by 2030.

The UK maintains high educational standards and it is home to many of the top 100 universities in the world. Of course, the prestigious Oxford and Cambridge universities always appear in the top ten universities in the world. But cities such as Edinburgh, Nottingham and Manchester are also home to top educational institutions. Together, they all entice international students, as well as create talented graduates ready to enter the property market.

The recent announcement that a number of Covid-19 vaccines are not far away from potentially being approved has created a great deal of optimism across the world. The stock markets saw a notable boost after the news broke, as investor confidence began flooding back. It’s too early to say for sure if this has had an effect on the housing market too, but it would be logical to assume that if we are able to get back to some normality thanks to a vaccine, then once all the pent up demand that’s been building throughout this pandemic is released we’ll see a significant increase in activity across all asset classes.

Therefore, now may be the perfect time to invest, because once a vaccine has been officially approved we’d expect prices to go up very quickly.

Since records began UK property prices have experienced a consistent upward trend over the long term. Even after the 2008 crash when property prices around the world declined sharply, the UK market bounced back relatively quickly compared to other countries, that in some cases have only just recovered to their pre-crash prices. This was mainly due to international investors investing in the UK looking for a secure and stable market in a time of great uncertainty.

This consistency continues to instil great confidence by investors in the UK property market, which will likely contribute to a continued positive and stable growth in prices for many years to come.