3 Key Benefits of Investing in Property in the UK?

“If this was easy, somebody else would have done it a long time ago.”

Earlier this year and inspired by true events, The Banker was released starring Anthony Mackie, Nia Long and Samuel L. Jackson to name but a few Hollywood actors. The American drama film depicted two entrepreneurs hatching an ingenious business plan to access the American Dream by fighting for housing integration and equal rights. 

Based in the 1960s, the film addresses contentious issues concerning diversity and how these men made history, paving the way for The Fair Housing Act of 1968, that prohibited discrimination concerning the sale, rental and financing of housing based on race, religion, national origin or sex.

If you’ve thought about investing in property to help secure a stable future, then you might want to consider the UK. With an array of inspiring cities promoting diversity and culture, it comes as no surprise investors are looking to secure their asset in some of the best locations Britain has to offer.

The UK market is thriving, despite the effects of the global pandemic, Brexit, and previous credit crunch. Property prices have been steadily increasing since the 1970s and are only set to reach new limits in the coming years. According to The Guardian, the recent stamp duty cut and pent-up demand have helped push the average property price past £245,000.

Regeneration has also played an integral part in the growth of the property market, with new projects and developments popping up all over the UK, particularly across the north of England where rental yields have exceeded those of the capital city.

When making the decision to invest in property you have to consider the benefits your future asset could provide, as well as taking into account how much money you will need to get started on your property venture. There is a whole host of material and articles available online by property investment specialists such as RWinvest, who have extensive guides on what you need to get started.

Some Key Benefits to Consider:

Great Return on Investment 

Investors in the property market have seen some of the highest returns on their investment in recent years, with annual rewards of up to 10% when acquiring a buy to let property. Investors who have carefully selected the right location in the cities hotspots have profited from high return yields and increased property prices as part of a long term plan. 

Young professionals working in the city, students, and now more people, in general, are looking to rent due to the mortgage limitations for first-time buyers. There is also the fact that unemployment is set to rise post-Covid-19, leading to high rental demand which gives great rental returns to property investors, which is another reason why you should consider the UK for your first or next investment.

Regeneration

With higher rental yields across the north of England compared to those in London, it makes sense that developers have started to invest their capital in the opposite end of the country. Regional cities such as Liverpool and Manchester boast regeneration in and around the city, with many more projects set to take place adding to the growth and transformation of these popular locations.

Manchester is highly sought after when it comes to new business. The northern powerhouse is famous for its investment in fast fashion, digital advancements and media, with MediaCityUK opening its door in 2007. Considered the ‘London of the north’, Manchester has multiple media jobs and is home to the BBC and ITV, which understandably attract thousands of people per year.

A Stable and Secure Asset

Experienced investors are now looking for alternative ways to protect their investments as the stock market takes a hit, and we enter into an economic crisis. Through exploring other options such as property, it has become a preferred form of investment, as a tangible asset is considered more stable given the current climate. 

As rental yields continue to grow and UK property prices increase, buy to let investment appears to be the safer bet when it comes to securing an asset. Bricks and mortar is the most suitable choice as you can receive double the rewards for one investment through both; monthly rental income from tenants, and capital appreciation when you come to sell the property in the future.

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