Why Are Investors Flocking to UK Real Estate?

By  //  July 23, 2020

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It looked for a little while as if the property market might take a dip in the UK following the Covid – 19 crisis – but that doesn’t appear to be the case whatsoever for investors.

Some of the reasons why investors are now flocking to invest in property in the UK.

It looked for a little while as if the property market might take a dip in the UK following the Covid – 19 crisis – but that doesn’t appear to be the case whatsoever for investors.

Whereas the economy has taken a hit from the months of government imposed lockdown, it seems to be the case that the UK property market has become the perfect place for investors to put their money.

Interest rates have never been lower, and it’s certainly looking like a buyer’s market.

But what are the actual reasons behind why investors are flocking to UK real estate right now?

Read on to find out more about why investors are looking to invest in UK property right now.

The Price Predictions Across the UK Are Positive

At current, UK house prices and interest rates are low, so it’s a good time to invest. But looking at future price predictions over the next five years, it’s fairly positive.

Of course, there are unique factors to consider with individual houses, like when a property was built, for example, however, generally there’s an indication that prices are set to rise in the next five years, meaning investing now could be a lucrative choice.

This also differs from region to region, but looking at the capital London right now, recovery has already started, and by 2024, things are set to look pretty positive.

Why not invest while prices are cheap, and set to rise?

The UK is the Top City in Europe for Investment

We might be leaving the European Union, but we are still very much a country within the continent Europe – and not only that, but it’s actually the top European city in which to invest in property.

The UK continues to be resilient in its’ worldwide investment scales, with London actually being listed as the second best city in the entire world to invest in property.

The only other city in the whole of Europe to make the top fifteen is actually Paris, meaning that London remains the most popular within Europe. 

Infrastructure is Being Invested In

In the upcoming years, across the country, infrastructure is being heavily invested in, which aims to improve connectivity across the country and beyond.

For example, cross rail is set to revolutionise the South – East for travel in and out of central London, and since its’ launch, housing prices within a one mile radius of the station have increased by as much as 66% on average.

Another £106 billion project in the UK which connects the Midlands and the North to London is set to create as many as twenty – five thousand jobs by the year 2030 when it’s thoroughly up and running. This will fuel the economy, and you guessed it, increase the property prices.

The UK is Being Regenerated

There are all sorts of buying and selling methods throughout the UK now, with some companies taking cash for houses, and others opting for traditional estate agency methods – but it’s good news for investors full stop, as many regional cities all over the UK aside from the capital are flourishing like never before.

Not only is infrastructure being improved in cities like Manchester, Leeds, and Birmingham, but there have also been redevelopments in said cities – a prime example being in Birmingham, which has undergone a complete transformation in the last decade, costing as much as £500 million.

Now, London property is pricey. So for investors, why not invest in some of these more regional up and coming cities and enjoy the fruitful returns in years to come?

There is a Rising Tenant Demand in the UK

Last of all, but by no means least, there is a rising tenant demand in the UK.

The vast majority of investors will invest in buy – to – let properties, so this is good news for them. The population in the UK is ever growing, and it’s forecast to grow by a further seventy – four million in the next twenty years. 

Undersupply in cities is a great opportunity for investors to take. So long as they look for the right location, they are likely to enjoy a healthy rental income as well as capital growth – and should make the most of taking advantage of a competitive market which will deliver them returns. 

With all of that in mind, why wouldn’t investors be flocking to UK property in their hoards?