Thinking of investing in in the UK property market? It remains a potentially profitable investment, providing you with a steady stream of income, even after retirement. While the UK housing market has had its ups and downs, most recently in the 2008 economic crash, it has managed to ride out most of the downturns – property prices are on the rise once more.
In fact, giving the relatively small size of the UK and its fast-growing population, the demand for housing isn’t going to diminish – it’s only going to increase over the coming years! Therefore, investing in UK property is a great way to secure long-term financial stability.
Here are four reasons to invest in the UK property market today:
House Prices are Rising
The UK is amid a housing shortage, with a growing population and relatively small landmass causing a limit on the number of available property. With more people needing houses, prices are only going to increase in the coming years, meaning anyone investing in property today could make huge gains in the future.
Demand for Rental Property is High
A direct correlation of rising house prices, more people in the UK are seeking affordable property to rent, giving investors plenty of reason to dip into the buy to let market. Finding a property that provides rental income at least 125% is enough to cover mortgage costs and expenses while providing a steady profit.
Of course, the profitability of buy to let is influenced by the type of mortgage, the location of the property, and how much rental income it can generate. Many landlords are finding that their renal income is only going to increase due to the demand for rental property.
Higher Yields Than Saving in the Bank
The reason that UK property investment is so popular is because it offers higher yields compared to leaving the money in the bank. Yes, the risks are higher but providing you invest in a good property with a suitable mortgage you can expect to generate more profit than you would on interest.
When you consider the rising property prices and demand for rental property, it’s clear that property investment in the UK is one of the most profitable investments current available.
The Risks Aren’t as High as You Think
Any investment comes with a risk and UK property investment is no different. However, property is historically one of the more secure investments you can make, because at the end of the day people always need somewhere to live.
Again, a shortage of housing options, especially of older Georgian and Victorian property, means that finding the right property can significantly reduce the risks of your investment. Location is key for securing a lower risk property investment, especially in the competitive buy to let market in major cities.