Why Invest in Property in the UK?
Facts about property investment in the UK:
The property business is a financially rewarding and exciting business. It can produce a consistent income, even once you have retired. Historically, property prices have been on a strong upward trend since the 1970s despite some volatility during the recession and credit crunch. Recent research has revealed that house prices have grown faster in the UK than in any other European country. In fact, since 1988 house prices have gone up by a staggering 333%. This represents an average rise of 12.3% per year. Many homeowners have enjoyed the rising housing market and have seen their property increasing in value over the years. Many now see no wonder property investment as the best way to provide long term financial security.
Why should you invest in property NOW?
House prices will carry on increasing:
The UK still has a serious shortage of housing caused by several social and demographic factors. Unlike other European countries, our population is expanding significantly, and we predict it to reach 70 millions by 2020 compared to 63.7 million today. More people living in the UK means that the demand for housing will increase, therefore driving up the price of property for the foreseeable future. According to the Office of National Statistics, there will be an annual shortfall of housing in the UK of over 100,000 properties each year for the next decade. This could mean a 1 million housing shortfall by 2025 if current trends continue.
High rental demand, high rental returns:
Several factors have combined to push up rental demand including an increase in immigration, more people living alone and rising house prices stopping first-time buyers onto the ladder. This is excellent news for landlords who find that their Buy to Let properties are being let extremely quickly while their rental income keeps increasing.
Interest rates have been at an all-time low for 6 years, making borrowing increasingly cheaper. With mortgage payments at their lowest, and ever-increasing monthly rent, landlords are enjoying significantly higher rental income, making it an ideal time to invest in the property market in the UK.