5 Reasons Why You Should Invest in the UK Property Market Now
Over the last couple of years, there has been some unrest in the UK property market, particularly for investors. Brexit has created uncertainty and still remains an unknown entity with no resolution. Various forecasts predict that if we go ahead and leave the EU, investors with property here will be financially worse off. However, this appears to be nothing more than scaremongering, and there are a lot of really good reasons to be an investor right now. Here are five reasons why you should invest in the UK property market today.
Rents and Returns
The cost of renting in the UK is at an all-time high, which might be depressing for renters. As a landlord, you are almost guaranteed to be able to cover your mortgage payments, insurance and other associated costs and still make profit at the end of the month. The Office of National Statistics has the following data recorded, which provides reassurance that things are still on the up. ‘In England, private rental prices grew by 1.3%, Wales experienced a growth of 1.1%, while in Scotland, private rental prices increased by 0.8% in the 12 months to May 2019. London private rental prices rose by 0.9% in the 12 months to May 2019, up from 0.5% in April 2019'.
With more young people taking up university, student accommodation is pushed beyond capacity, and increasingly students are seeking private rentals. Properties in university towns and cities can see increased occupancy and a higher return on investment. You will need to ensure you have a specialist student renters insurance policy as standard policies will not offer the right level of cover.
Low House Prices
The UK property prices are low, again partly because of the uncertainty surrounding Brexit. However, those who have been through situations like this before will tell you that the bigger picture remains the same. It will be in the investors' favour to snap up property while the market has a wobble as overall there will be no decrease in demand for houses to rent.
Of course, one of the reasons there is such a demand is the booming population which shows no sign of decreasing. In the last decade, the recorded numbers showed a population increase of 7%, meaning there are about 68 million people on this island. This is set to continue and creates an even bigger supply and demand chain for the housing sector.
Mortgages and First Time Buyers
Statistics available also confirm that getting on the property ladder is no easier, and people prefer to rent as buying is too out of reach. With all sorts of rates involved in purchasing including interest rates and the base rate, a homeowner may feel put off making that commitment. It is easier to have what is essentially a business mortgage, or buy-to-let, in the current financial climate.
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