The property market can be a truly rewarding industry to be involved in and can continue to produce consistent income even past retirement. Historically speaking, property prices have been on an upward trend since the 1970s, and these prices have grown faster in the UK than any other European country.
Sam Najafi, property writer, believes there are a range of reasons to consider investing in UK property.
Rising House Prices
Despite current circumstances, house prices across each UK region are expected to rise over the course of the next five years. The market in London is recovering, but the increases there are unlikely to match the rises seen in other regions that are racing ahead of the national average.
The UK has a shortage of housing, and unlike many other European countries, the population is still expanding. The increasing population will mean demand carries on rising, and according to the Office of National Statistics, there is likely to be an annual shortfall of more than 100,000 properties a year for at least the next decade.
Regeneration
Prices in London have risen rapidly over the last decade, and as a result, investors have begun looking outside of the capital. This change has led to new developments including the HS2 project, and more amenity-led developments that provide a variety of residential and commercial spaces.
In the past decade, Birmingham alone has witnessed a huge transformation, including a redevelopment of its New Street station, the Grand Central shopping destination, and ongoing developments such as Paradise and Arena Central.
Population
Forecasts show that the population of the UK is set to reach 74 million in the next twenty years. This increase is a clear sign of the demand that the housing market is facing. According to the Office for National Statistics, a quarter of the population will be 65 or over by 2050, and this shift opens up opportunities for investors as a record 1.13 million over-50s are renting.
Interest Rates
March 2020 saw the Bank of England cut the base rate twice, and it remains at a historic low of just 0.1%. This rate means that many lenders are offering Buy-to-Let mortgages with competitive rates and new products that make the investment process more accessible.
This is good news for beginners looking to invest in UK property, but also for those with existing portfolios, as it gives investors the opportunity to remortgage properties and release equity, paving the way for new investments.