AEE Property
UK Property
For investors that want to invest in a relatively robust and stable market, the UK remains a solid choice. As the preferred choice for many overseas buyers in 2019, the excellent growth of regional cores has pushed new developments and infrastructure improvements, putting it firmly at the top of investor wish lists for the new year.
With the spotlight moving from the traditionally popular London market to regional hotspots and emerging cities, where are the best places to invest in UK property in 2020?
All property investors are keen to see what 2020 holds. But before we look to the year ahead, we need to take time to reflect on the current market. 2019 has revolved heavily around Brexit. Britain’s planned withdrawal from the EU has dominated the media for months and has had a major impact on the property market.
If there’s one thing the property market dislikes, it’s uncertainty. However, as we look ahead to 2020, the UK remains a good choice as a property investment location. It has been a hotspot for many overseas buyers for a number of years and looks set to remain high on investors’ wish lists (both overseas and domestic) in the New Year.
Traditionally, the UK property investment market has centred on London. However, in 2020 and beyond, we will see other cities and regions drawing in investors hoping to get a good return on their money.
8 Top Reasons to Invest in UK Properties
- Politically and economic stability
- Transparent judicial and tax system
- A proven safe investment historically
- Top education institutions
- Record levels of population growth
- Housing supply at 100-year low
- 35% of population will rent within next five years
- Rising rental yields
Invest in Northern UK properties with a 25% deposit and a 75% mortgage; and enjoy rental yield returns of between 7% – 9% net per annum on an interest- only mortgage. Take advantage of the weak pound and low bank interest rates to make your money work harder for you. A secure investment with monthly income paid straight into your bank account with a steady capital growth.
Savings in a bank account
Low interest rates
No capital gain
UK property investment
High rental yield
Good potential capital gain
very strong rental market
Capital Gains
Along with a high rental yield, property investors would also want to make a profit on their property should they wish to sell. Based on the latest report by the UK Buy Association, over the next five years, the North West of England and Yorkshire including cities like Manchester, Liverpool, Sheffield and Chesterfield, capital value growth is expected to reach 15.3% (averaging 3.06% per year over the next five years). This is due to the area’s imbalance between supply and demand. At the same time, rental prices are forecast to increase by 10% over the same period of time.
