As if to purposely and deliberately highlight the necessity for swift action when investing in UK property, more than a few news items have come out in the past few weeks and months showing a large increase in foreign investment into the UK property market.
There are a number of reasons for this, but probably none more relevant than just how stable and profitable it is as an investment. Considering the global pandemic that has occurred over the past 24 months, economic stability hasn’t exactly been a guarantee.
As the spectre of possible restrictions return across Europe, most are hoping that the UK won’t have to implement any restrictive measures, with case numbers staying fairly steady as well as hospitalisations.
In response to the pandemic most Western governments are now wheeling out large scale spending on things like infrastructure and tax cuts to try and ensure that their economies are kept moving and expanding but it looks as though it’s creating a certain level of inflation, causing the cost of living to rise as well devaluing savings.
Foreign investment triples
In just a decade foreign ownership of properties in England and Wales has tripled, according to figures released by the Centre for Public Data.
Since 2010, investment and ownership has exploded as the UK has one of the world’s leading property markets in terms of price growth, rental growth and yields.
This means it’s not exactly surprising to see that investors from across the world have taken notice and decided to put their money in a stable and profitable market.
According to International Investment, ‘The growth in titles registered in Northern cities like Liverpool, Manchester, Salford and Leeds has also been notable, particularly since 2016.
The Centre for Public Data said previous studies of the effect of such buyers on local markets have been limited, based on small samples or anecdotal evidence.’
The north and especially the north west are now becoming extremely hot areas for this type of activity and this should be seen by landlords and investors as a vote of confidence in the market that things will continue to be stable and profitable in the long term.
Of course, with further interest and investment comes a drive in price growth meaning that it’s more expensive to get into the market with cost of entry so speed may well be of the essence considering the trends over the past decade or so.
It may be worth considering speaking to an expert that can talk you through properties available, yields and the areas that they’re in. At yieldit, we specialise in resale properties directly from other landlords, so many already have tenants in the property and are already earning an income, so why not speak to one of our specialists?
