The UK is the worlds 6th largest economy and it is well documented that demand for homes in the UK property market has far outstripped supply (up to 120,000 homes per year according to The Barker Report).
High UK property house prices have priced the first time home buyer out of the Greater London market area. Bank requirements for larger mortgage deposits have prevented many people from buying.
The UK population is also growing at 0.7% per annum and will stand at 65 million plus by 2018 and 70 million by 2028. All these factors in turn will cause a massive increase in demand for quality rental property.
All indications are that UK property house prices will increase by only 3% after inflation in the medium term, but with the simple law of supply and demand, property prices have to go up in time.
Industry commentators are saying that we can expect the next few years to be stagnant followed by steady growth, until the market peaks again in a number of years.
We always have the properties that we offer inspected and make sure that all the boxes are ticked. So, we’ll focus on important aspects like:
- Location - where is the property based, is it on the right side of the road, what are the micro demographics, etc ?
- Employment - what is the employment like in the area (without jobs, you have no tenants) - what is the ratio of income versus mortgage cost (this gives us a good idea of property price versus first time buyer capabilities)?
- Transport - is the property near good transport systems (it can be buses, underground, general rail, motorways, etc)?
- Overall area - what is the overall region like? What is its future, what benefits does it offer the tenant?
- Future developments - is the area going through any regeneration (or negative conditions, e.g. factories closing, or corporate head offices closing that could have an affect on jobs)?
We go through all these to make sure that the property is going to be viable for years to come.
What to watch out for in your Investments:
Key considerations to factor into your choice of property, when looking to finance the purchase, include:
- Concrete construction (not good - badly built in the past and not many new ones are constructed like this nowadays).
- Square feet versus number of rooms (you can gain immense value by changing space and creating extra rooms - so if your property is say 70 square metres and 2 bedrooms, by rearranging to make a 3rd bedroom, the value climbs to the market related price of similar three bedrooms in the local area).
- The wrong side of the street (not good - and this can mean facing the wrong way with no sunlight, or literary being one road away from a council estate).
- Ex Housing authority homes (watch out for sneaky future service charges here (levies) which can deflate your yields).
- Flats above shops (can be difficult to finance because of noise or cooking smells if there is a restaurant below).
- New builds and off plans (banks can be difficult with loan to values on new builds as they have been worried about over valuations by the developers, but we’ll guide you accordingly here).
Purchasing in the UK can be a complicated process. A trusted team of conveyancers, valuators, mortgage brokers and a proper due diligence is crucially important for your investment strategy.
WE ARE ABLE TO OFFER YOU A LOT OF THE PROPERTY FOR SALE IN THE UK. TO VIEW A SAMPLE OF UK CLICK HERE
TO BETTER UNDERSTAND WHAT YOU ARE INTERESTED IN, PLEASE EMAIL YOUR REQUIREMENTS AND WE'LL ENDEAVOUR TO FIND THE RIGHT PROPERTY FOR YOU, BE IT RESIDENTIAL OR COMMERCIAL.