Thursday, November 25, 2021

Why Is The UK An Attractive Place To Invest?

There’s never been more choice when it comes to the types of property you can invest in, let alone the country where the property may be situated. 

For any UK based investors, have you ever considered the perks of investing in a format you are familiar with? Clear information on your responsibilities as a landlord is provided by the UK government, making it easy to stay on top of the latest regulations, plus incentives related to tax or income. So, there’s no need to worry you’ll miss any of the important details as may be the case if there’s a language barrier, or simply less resources available in your chosen country if investing outside of the UK. 

Even for international or expat investors, the UK has plenty to offer that’s not always immediately apparent, especially if looking further afield than London. Large scale projects such as HS2 and our growing offshore wind capabilities are driving investment further north, making now the right time to capitalise on the market. 

So wherever you happen to be based, if you are looking to invest in property, here are some of the top reasons why the pinpoint in your map should be firmly placed in the UK to tell you more. 

The UK housing market is woefully undersupplied

Any investor naturally wants to know that there is a demand for their asset, and this is certainly the case with housing in the UK, as the market continues to be undersupplied.

Data from Zoopla suggests only one in 20 properties in the UK changed hands in the last year, with property sales currently lower than at any time during the last six years. New build properties are being built, though we’re a long way off meeting demand, with RICS announcing the ‘homes shortage deepens’ in a recent Reuters article.

The housing shortage cannot be solved overnight, since developments are subject to developer interest land availability which varies significantly across the country. In the meantime, rents continue to be pushed up as tenants are staying for longer in their accommodation rather than buying, both due to the housing shortage and the ever increasing cost of purchasing a home. 

Property prices remain unphased even during economic uncertainty 

The words ‘Brexit’ and ‘pandemic’ might look bad on paper, but the UK housing market paints an entirely different picture. During 2020-2021 when the impact of the coronavirus was most sharply felt, house prices rose by 10.6%, and the average rent climbed to an all time high of £1,061 PCM. 

The price rises in the face of such uncertainty demonstrate the resilience of the UK property market offering reassurance for investors. Ultimately, people still require a place to live, regardless of the global situations that unfold around us. In addition, a spotlight was shone on the quality of accommodation during the pandemic, with a shift to remote working further driving the demand for high quality buy-to-lets

The quality of UK infrastructure is high

Property in the UK has been rated as some of the best in the world for its infrastructure quality, beating the likes of the United States, Canada and Australia. The British building industry has stringent quality standards that need to be met, with many specialisms from surveyors, architects, contractors, building regulators and health and safety executives involved in every aspect of the process. If the build does not meet certain specifications it will not be signed off, let alone be made available for purchase. 

For any property investor considering the UK versus other countries, the question is can the same level of quality assurance be matched elsewhere? Given our UK investment opportunities start at just £75,000, not only is your capital in safe hands in terms of the build quality, but you’ll need less of it to secure your investment, especially compared with many other locations across the globe. 

Higher build quality also typically equals less maintenance and repair costs as a landlord. The exceptional specification that can be found in British builds also means the property will command higher rental figures, especially compared with basic or substandard accommodation. 

If you do happen to purchase one of our investment opportunities here at Thirlmere Deacon, you’ll also notice we offer strategic locations, which combined with the high quality of specification seek to maximise your return as an investor.

Endless locations to explore

Many investors, particularly international investors are naturally drawn to London as the capital of the UK, and while there’s some fantastic opportunity here, our island has far much more to offer beyond the big smoke.

This is a perfect opportunity to let investors who aren’t familiar with the UK know that our road and rail infrastructure offers excellent connectivity, making the entirety of our land in easy reach. Another surprising fact is that the UK has 286 airports, 61 of which are commercial airports which is impressive considering the relatively small size of the UK. With no location off-limits, the entirety of the UK is open for investor interest. 

Leaving London behind, investment opportunities are constantly cropping up in the likes of Birmingham, Liverpool, Newcastle, Sheffield and Hull. Such locations may not have been the first choice for investors previously, but billions of pounds of combined investment are fast changing perceptions, and investors want in on the act. 

Not only do the locations differ in terms of bustling city centres to the shores of the River Humber, but the asset classes do too. At Thirlmere Deacon alone, we offer buy-to-let properties, student accommodation investments and hotel room investments. Both the student let market and the tourism industry are strong performers in the UK, allowing for portfolio diversification. 

To sum up

One post isn’t enough to cover all of the reasons why the UK property market is worth investing in, but hopefully we’ve given you a flavour of what Blighty has to offer your portfolio. 

Thirlmere Deacon is a property investment company with offices in London and Dubai. We have investment opportunities available spanning the length and breadth of the UK, including Birmingham, Hull, Liverpool, London, Luton, Manchester, Newcastle, Preston and Sheffield.  

With our investment opportunities starting at just £75,000, and rental yields well above the national UK average, we have something to offer investors of all calibres. 

If you’d like any further advice on anything we’ve mentioned above, or if you are considering investing in one of our opportunities, please drop us a message or call us on +44 (0) 2039507939. 

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