Log in Join Now

Login to your account

Email *
Password *
Forgot your password?

Create your account

First Name*
Last Name*
Password *
Verify password *
Email *
Already have an account? Log in

The UK Property Investment Market: One Special Real Estate Trend to watch out in 2018 for RE investors

trends

Currently, the UK property market continues to steadily grow and show overall positive dynamics. At the moment property market in the UK continues to attract more and more RE investors interested in purchasing real estate assets in Britain, Scotland and Northern Ireland. According to the official report from the UK House Price Index Summary for May 2018, average house prices in the UK increased by 3.0% in the year to May 2018. At the country level, the largest annual price growth was recorded in Scotland, where house prices increased by 4.9% over the year to May 2018.
There are several reasons why the UK property market is considered to be a good investment choice. First, it has good gross annual rental yields which generally vary from 12% to 17%. Second, the UK is famous for its excellent financing and banking services and for its century-long successful investment history. Some may argue that Britain has actually been one of the creators of the investment concept because it had engaged in investment strategies even in the Victorian era and even before that. Finally, the UK investment market offers a great diversity of the residential property, which is also very important for the investors who wish to diversify their portfolios and invest in different types of assets which can potentially bring absolutely different yields and offer less risks.

Here is one of the most important real estate trends we may potentially expect from the property market in the UK in 2018:

The real estate rental market is expected to go up, something to look out for RE investors.

According to the official survey, provided by the Royal Institution of Chartered Surveyors (Rics) which was published by the Guardian, the UK rents are expected to go up by 15% in the next five years. How so? You may ask and we will answer.
As the Rics put it, the supply of rental accommodation diminished while demand from tenants continues to go up. As the result, the price to rent an apartment in the UK is expected to skyrocket despite its already high prices. Furthermore, according to the same survey, it is predicted that already in the next 12 months the rent price will go up by as high as 2%.
So as you can see, the change may come really soon, that`s why more and more investors are looking out for the rental projects in the UK property market. It`s no wonder why they do it. It`s almost a necessary choice for most people living in the UK to rent, rent and rent again.
The UK is extremely attractive as a country due to its excellent job market, a prestigious educational system which is considered to be one the best in the world and also a huge number of tourist attractions. All these factors are the reason why millions of people from all over the world move to the UK each year for a short-term visit or to relocate permanently. Naturally, the demand for renting an apartment is always growing because not many people are able to purchase property in the UK property market. That`s why the rented apartment is the most popular option for people who are moving to the UK. It`s something everybody had been looking for in their lifetime and something that will always be needed.

uuu

Here is another reason why we believe that rent prices will be going up. According to the Guardian, figures from the tenant referencing company HomeLet showed average rents in London rose 3.3% year-on-year in July 2018 to £1,615 while the average rent in the rest of the UK was up 1% to £777. That`s why it may be very reasonable for the RE investors in invest in assets that are rented.

At the moment, we have the UK Property Bundle available on our platform. It has several properties which had been rented for a long time in Scotland. As you can see, the UK property investment market shows some good trends and we believe that these trends will potentially bring benefit to our investors who chose to invest in the UK Property Bundle.

 

Learn More

 

Sources

  1. https://www.gov.uk/government/publications/uk-house-price-index-summary-january-2018/uk-house-price-index-summary-january-2018/uk-house-price-index-summary-may-2018
  2. https://www.theguardian.com/business/2018/aug/09/rents-in-uk-will-rise-for-next-five-years-experts-predict


Disclaimer

This article is for information only and does not amount to advice or a recommendation to invest in Property Bundle.  Any personal opinions expressed are the views of RealtyBundles at the time of publication, are subject to change and should not be interpreted as advice or a recommendation or relied on. RealtyBundles CFP ltd. does not provide financial, investment  or tax advice and does not represent that any opinions contained in this article or any investment opportunity is suitable for you, including but not limited to those contained in the Article.

You agree to make your own independent decision on the financial and investment information available throughout the Website and we recommend that you conduct your own research into the available offerings before making an investment decision. If you are in any doubt about the contents of an investment offer we recommend you seek independent professional advice.

Where any estimates, forecasts or projections have been made, these are what the RealtyBundles believes to be reasonable as of the date of this document. Any statements may involve known or unknown risks, uncertainties and other important factors, which could cause actual performance to differ from those expected, as such they are not reliable indicators of future performance and should not be relied upon. Past performance is not a reliable indicator of future results.

No representation is made or assurances given that such statements or views are correct. Investors must determine for themselves what reliance (if any) they should place on such statements, views or forecasts, and no responsibility is accepted by RealtyBundles in respect thereof.

RealtyBundles has taken all reasonable care to ensure that the facts stated are true and accurate in all material respects and that there are no other material facts whose omission would make any statement of fact or opinion misleading.

Users of our website should be cautious about any of the data provided  and should consider the source of any such data as various factors may influence or factor into the financial analysis or opinion.

The accuracy, completeness or timeliness of such Information cannot be guaranteed and is subject to change without notice.