Oct 21, 2015
The UK is presently one of the hottest markets in the world for residential property investment. Solid economic growth and a well-documented decrease in supply of available housing makes the country an ideal opportunity for investors seeking high property returns.
According to new research from Savills estate agents, Britain is at present the fourth best place in the world to profit from rents and rising property values. The UK trails close behind the USA, United Arab Emirates, and Singapore when it comes to make healthy returns on property investment.
Rate of population growth, growth prospects, and economic performance were all used to calculate how well a property investment would play out amidst low housing supply and a continually strong demand for rental accommodation.
Property list prices have increased in the UK by 20% in recent years. At the same time, there has been a growing tendency among residents to rent instead of buying their homes. Together, these two trends suggest that by 2025, more Britons will be renting property than owning it.
Yolande Barners, Director of Savills World Research, explained that when growth in population and affluence converge with a shortage of housing and available land, increasing house prices is the anticipated result.
The UK has long been the destination of choice for overseas investors. The prospect of returns in a strong currency, combined with economic and political stability and a broad range of property products to select from, has attracted interest from several quarters. It has been a particularly appealing investment opportunity in recent times, with currencies like the South African rand sinking to record lows compared to the British pound and the equities crisis that erupted in China after Black Monday. It all emphasizes the wisdom of adding UK real estate to one’s asset portfolio.