Large numbers of investors both from the UK and overseas see the UK property investment market as a cornerstone of their investment portfolios. As investors continue to look towards the UK for property investment opportunities, the increasing demand for investment property in the UK is outstripping supply for both student property and residential buy-to-let properties for sale.
From Manchester to Birmingham, there has been significant growth in the UK property market, including the UK student property sector which in 2007 stood at just £2.1billion. By the end of 2019, the UK student property market is estimated to be worth £52.3 billion, which is 72% higher in value than in 2014.
Recent research from Savills shows the total value of the UK’s housing stock has passed £7 trillion which is 34% more than it was 10 years ago.
Aside from the fact that the UK property market shows no signs of slowing down, investing in UK property is a great option for those looking for high rental returns or long term capital growth. With the rise of student investments and a range of buy-to-let property for sale in all major towns and cities, the UK now has a wide range of opportunities available to investors.
Choosing the right investment property for sale involves a combination of things such as:
In terms of location, although property markets in cities such as London continue to fluctuate; other cities have been making their way up the ranks when it comes to higher yields and overall better investment opportunities.
For more information about student accommodation investment or buy-to-let investment in the UK, please contact our team at Pure Investor today.
Call us on +44 (0) 161 337 3890 or contact us using the form below to arrange your free no obligation property consultation.
Buy-to-let properties for sale have experienced a surge in popularity in recent years, and the UK's property investment market has attracted a lot of attention from overseas investors.
In many experts' eyes, the high demand for student and buy-to-let property for sale in the UK from both domestic and international buyers bolsters opinions that the UK market is among the world's strongest. High returns, which are guaranteed for an initial period in many new developments, are a key factor in attracting international investors.
Recent buy-to-let property tax changes to landlord income has cast some doubt over the long term future of this type of investment, however buy-to-let investment still offers a safe place to invest your capital, as long as you do your homework and choose the right property in the right location.
The expected yield on buy-to-let investment properties for sale can be as high as 10% in some areas of the UK and with interest rates at an all time low, it makes sense that a large number of investors opt to put their money into buy-to-let property for sale, especially with the potential rewards of long-term capital growth and high rental yields helping to maximise their return on investment.
When it comes to purchasing student investment properties for sale, finding the right location can really pay off, as current research shows university cities such as Manchester, Liverpool, Birmingham and Edinburgh offer some of the highest rental yields due to the continuous high numbers of students that look to study there.
What follows high student numbers? The demand for accommodation and property investors can take advantage of this situation as the momentum of the sector does not show any signs of slowing. University applications have been consistently rising for some years. Across the first four months of this year, Britain saw 17,000 student beds traded across the country, racking up a total value of £950,000 million.
With multiple leading universities drawing students into the country, the student accommodation investment market is distinctly undersupplied. The result is high demand and a willingness on the part of tenants to pay attractive rents.
What’s more appealing is student accommodation is no longer outdated dorms that offer just enough space for a desk and a bed. Student property has evolved with its students, as most student accommodation now offers residents modern living spaces and facilities such as gyms, cinema rooms, private parking and more.
London has been a big player for decades when it comes to property investment, however, as infrastructures becomes more advanced and accessible, people are happy to relocate to other areas of the country that can offer them more in-terms of jobs, lifestyle and affordability.
The UK government have big plans to invest over £3.4 billion alone in northern towns and cities in the UK, as part of the Northern Powerhouse initiative. The aim of the initiative is to boost local economies in the North by investing in transport, business innovation, culture and education, which is expected to stimulate business growth in these areas and create a large number of employment opportunities for local people.
The positive effect of the Northern Powerhouse initiative has already started to be seen, with house prices starting to rise and the number of young professionals choosing to relocate to northern cities increasing, creating a number of exciting opportunities for UK property investment.
The Northern Powerhouse in numbers:
You can read more about the investment and development of the Northern Powerhouse here.
If you haven’t heard, Manchester is becoming one of the most attractive places to live in the whole of the UK and as a result, property prices are up 5% compared to the year before. Manchester is no stranger to change and when the BBC made Manchester its home, students, couples and families took the opportunity to become part of a developing city.
Steady improvement of the city over the years has contributed to the development of transport systems, including the Metro and the local airport, not the mention the ever successful Northern Powerhouse Proposal which aims to further improve education, skills, transport infrastructure and the economy in general. Taking into consideration the cities evolution, Manchester recently came out on top in the LandInvest Buy-to-Let Index.
Property investors could take advantage of buy-to-let property for sale in Manchester, as housing generates higher rental returns than the national average. Combine this with the high demand for property and investors could see generous returns on their investments.
Another city within the Northern Powerhouse is Liverpool and it’s another city that has fantastic potential when it comes to property investment in the UK. Buy-to-Let is a popular avenue for investors in Liverpool and can produce high rental returns in some parts of the city.
Other rental opportunities include student accommodation. As the city brings in over 70,000 students, demand for high quality accommodation is on most students’ minds, as they search for flats and apartments that include facilities such as en-suites, gyms, bars and modern lounge areas.
Further regeneration into the city includes Liverpool Waters. This huge project aims to provide residents and businesses with waterfront apartments and high-spec business spaces as well as creating jobs and improving education and training. Property investors have a key part to play in Liverpool Waters as developments are available for investors to be involved with.
Property investors in Leeds will have seen great returns lately as house prices rise. Although the centre of the city is the most expensive when it comes to housing, it’s where people want to live. This chain effect of supply and demand is starting to spread out to surrounding towns and villages and although it can provide students, couples and families with ‘more for their money’ the demand for suitable properties is still there.
New housing is on its way, as thousands of new builds are currently under construction. With the addition of new homes, comes the need for better infrastructure and so, transport links are being introduced and heavily improved to take the strain of this demand. New transport links include the HS2 and HS3, including a revamp of Leeds station.
Aside from housing, student accommodation is also in high demand as over 65,000 students study in Leeds. As this number continues to increase year after year, property investors should be optimistic at the prospect of receiving high rental yields from their student property investment for the foreseeable future.
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