Why invest in the United Kingdom:
Today property in England offers strong investment opportunities in carefully selected locations.
It is true that real estate prices have rocketed in England over recent years, especially in London, but for those prepared to dig a little deeper, some highly profitable property choices can still be made.
Investment in the UK remains very solid and will continue as a popular option for a diverse cross-section of the population.
The general mistrust in institutions, confusion over the pension, tax systems and falling equity markets has led popular opinion towards investing in properties in the UK. More and more people are turning to property due to failure of high expected returns in other sectors.
There is a solid long term opportunity to make profitable returns in property investment. Huge population growth, sluggish government housing policy, and interest rates will influence the property purchasing process as well as increase the need and number of buy to let properties in the coming decade.
Local growth/Rental yields
On the back of the growth for rental accommodation, specially tailored legal services are becoming important in the rental market. The market in rental properties is especially buoyant around major conurbations such as London, Manchester, Birmingham, Edinburgh and Glasgow. In these cities, many international business visitors are consistently in need of high quality homes for short-to-medium term lets.
Capital appreciation
The UK property market has enjoyed exceptional capital growth of between 20%-30% per annum. Government projections show an increase of households of up to 14% by 2021, whereas Halifax predict a housing shortfall of at least 400,000 by that date.
Whilst the number of households has increased by almost 50 per cent over the last 40 years, the number of people in the average UK household is reducing. Property Investment provides the prospect of withdrawing tax-free lump sum, thus offering the potential of releasing funds for future investment purposes.
Low confidence in stocks and pensions
Property has outperformed the FTSE Share Index by up to 40% during the last 12 months. The property market has consistently outperformed stocks and share. Property has become a recognised alternative subsidy to underperforming private pensions.
Ownership
Home ownership throughout the UK is firmly established. Not only is it the most desirable way of housing oneself and one's family, it's also a long-term financial investment.
The Bank of England raised interest rates by 0.25% to 4.75% in August 2006 and this was recently increased to 5.75% in 2007. The situation is expected to dampen demand a little further, particularly amongst those seeking a mortgage to finance their purchase. As a result, price rises in 2007 could also be marginally lower, although growth is still likely to be slow but positive.
Savvy investors are profiting from a slow market to supply rental accommodation for an insatiable demand in prime locations, where property prices are unattainable for many. Buy-to-let investors are enjoying record yields and in London only one third of new properties are now being bought by owner-occupiers.