The UK has always been an attractive location for international investors. With its active property market and strong demand for rental accommodation, it’s becoming increasingly tempting for international investors.
Apartments in northern cities – like Liverpool, Manchester and Leeds – are providing lucrative opportunities for investors. Property investment companies like RW Invest have registered this interest and are providing ideal properties across the UK.
A recent survey that spoke to investors from Saudi Arabia, the GCC and the UAE showed that 80% of investors agreed that the UK was a strong place for property investment. This high percentage shows that people from a range of countries are looking to invest in UK property. Despite uncertain international times, and Brexit negotiations, of which the progress of has been called into doubt, investors are still seeing the UK a good place to invest.
The fast capital appreciation that is occurring for UK property is also a draw for investors. Overseas property investors are looking for UK property that is in an area where house prices are on the up. UK prices have been steadily on the rise, though growth has been varied across areas. In certain hotspots, capital appreciation has been incredible, for example in Nottingham, house prices have risen almost 10% in a year. Bristol property prices have risen by 71% since 2009 and Cambridge property has risen by 81%.
In the past London was previously seen as the premier location in the world to invest. While holding property in London still has an element of prestige, several factors mean that other UK locations are becoming a far smarter choice. Since the financial crash around 2009, property prices in London have risen by a massive 86%, and the average UK property in one of the top 20 cities has risen by 56%. Though London was still the most popular location to invest, 13% of investors cited Manchester as the most appealing location to invest in in the whole of the UK.
The fall in the pound has been a further encouragement for overseas investors to consider the UK. Investors from abroad are finding that their money goes further, and they can increase their property assets for less. While Brexit uncertainty has loomed, UK property has been more affordable for potential investors. As the hound starts to rise, investors who have taken advantage of these low priced propertied will see them skyrocket.
Rental yields are another significant factor for investors to consider when choosing where to buy their next property. London has seen minimal rises in yield and high property prices in the capital leave little room for profit. There has been a steady rise in the number of renters in the UK. Higher house prices and costs of living mean that many people aren’t buying their first home until far later in life, if they are at all. This increase in renters means that buy to let property has had a considerable boost. A growing demand for high quality rental accommodation has been a large factor in the increase in rents, proving profitable for investors.
The increasing rental rates in the UK are a major reason why property investors are looking to Britain for opportunities to invest. In the next five years, rents are predicted to rise by 15%. In northern cities in the UK this figure has been even higher. In Manchester rental rates have been predicted to accelerate 40% than the UK average. Investors are already benefiting from their but to let investments in the UK and this trend looks set to continue.