If you are looking for an investment opportunity, the property market is a viable option, and the UK property market offers a range of strong reasons to choose this market. This guide will outline why you should invest in the UK property market.
The demand for rental property in the United Kingdom is high, with an increasing number of people unable to afford mortgages or to buy property. This will ensure that investors should find that they can obtain tenants who are willing to pay a reasonable price for their property.
The expected rental yield can differ greatly across the country but it is not uncommon to find expected rental yields of 6% and above, which is considered to be a steady and consistent return on an investment.
With many people being unable to buy homes or afford mortgages, as stated above, there are incentives for people who do have access to the funds required to buy property. This means investors can benefit from reduced prices or reductions from sellers looking to move their property on. For an investor that is willing to research areas and offers, the UK should provide highly affordable ways to obtain property.
One of the biggest issues in the UK property market was the fact that traditional lenders made it very hard to obtain a mortgage. Lenders were using harsher criteria in determining who was suitable for a loan and there was a need to produce a high level of deposit. This is no longer the case and traditional mortgage lenders are now softening their stance.
The Nationwide received a lot of publicity in the first quarter of 2016 with the reintroduction of a 100% mortgage. There was criteria attached to this mortgage so it wasn’t going to be a suitable option for everyone but anything which helps more people obtain a mortgage has to be seen as a positive thing for the market as a whole.
While London is the area that grabs attention when it comes to the UK property market, there are many areas which are attractive to live in and which offer good investment returns. Manchester is rightly seen as the Northern Powerhouse in the UK, with strong business links around the world, and many other areas are benefitting from investment and regeneration.
London is still likely to be the first place that some people think of when it comes to property investment, but more affordable property in stylish city centres across the country should also be considered.
Even with the uncertainty of the outcome of the European Union Referendum, there is a great deal to be said about the UK. The nation is recognised as a leader in the world economy, it is a G8 member, a founding member of the United Nations and it is also part of NATO. If you are looking to invest in an area that can be relied on, the UK is still a very suitable proposition.
Investing in bricks and mortar is always likely to be one of the smartest ways to use your money. The UK property market has had ups and downs in recent times but there are short and long-term reasons suggesting investing in the UK property market makes sense.