Why Should You Invest in UK Property?

Buy-to-let property investment has been a top choice for many investors over the years.

Providing regular income and considerable capital appreciation, investors will often cite real estate as being able to bring some of the best returns over the last decade.

However, is property still a good investment in 2023?

What are Investment Properties?

Firstly, what is an investment property?

An investment property is a piece of real estate purchased with the intention of generating a return. This return could be through rental income, capital appreciation from future resale, or a combination of the two.

However, as with all ventures, investing in property can get quite intensive.

So, why should you invest in UK property?

Huge Tenant Demand With Housing In Short Supply

In the wake of the pandemic, the influx of lockdowns and other mandates have led to an unprecedented change in the UK property market – making right now potentially one of the best times to invest.

More people than ever are looking to rent instead of buying a property outright, and the population in the UK is continually on the rise.

Alongside this, there’s a severe lack of supply to meet the growing demand for housing.

According to Zoopla, demand for rental property is 46% above average – with total supply 38% below average.

As the market remains so volatile, more people will likely rent instead of buying a house outright.

For example, according to the latest Housing Census data, the number of renters in the UK has increased by 28% over the last ten years.

Massive Property Price Growth for Rental Property

The most significant appeal behind investing in property is the potential for long-term capital growth.

With demand for housing on the rise, prices continue to grow – offering some of the highest returns possible in the UK.

In 2021, for example, the average value of UK property surpassed £250,000 for the first time, increasing at the fastest rate since the early 2000s. As of December 2022, the average property price in the UK is now valued at £294,329 – 17.7% higher than in 2021.

Depending on where you invest, you could see even higher values.

For example, Liverpool, one of the best UK investment hotspots this year, has seen property prices skyrocket by 18.1% in the last year, with other areas in the North West seeing similar growth.

Factoring in additional growth predictions from Savills, which anticipate up to an 11.7% price growth in the North West region and 6.2% in the UK overall by 2027, it’s clear that long-term investors could be set for a fantastic cash pay-out in the coming years.

Property Is Lower Risk Than Other Strategies

Compared to other investment strategies (such as stocks and cryptocurrency), buying property is often considered a relatively lower risk.

This is because the property market, particularly in the UK, has proven to be highly resilient during economic turmoil, making this an excellent opportunity for those seeking a more stable investment.

This is another of the significant advantages of investing in real estate and a big reason many people invest in properties.

Conclusion

As long as you have the means and know-how, you should consider getting involved with UK property investment.

The market is most likely one of the most potentially profitable (and growing) ventures to get involved with at the moment – for both UK and foreign investors alike.

If the growth rate stays healthy for the foreseeable future, barring any surprise market collapses, this period is the best point to get involved.

It is, however, essential to remember that this guide serves as just an introductory welcome to the investment process.

You will need to research and perhaps consult an expert property company to get all you can from an investment!