UK INVESTING
But is now the right time to buy ?
The latest UK property headlines paint a picture of doom and gloom ; the mortgage market is volatile , house prices are down , interest rates are up and there have been huge changes within the government . With 3 different prime ministers this year alone and a change to the head of the monarchy , is now the time to look at buying UK investment property ?
Arguably yes , we believe it is a great time . The increasing rate of inflation combined with higher interest rates is pushing first time buyers out of the market as they struggle with the increased cost of living and into the Private Rented Sector . According to The Guardian , demand for rental homes in the UK is “ up by 23 % in a year , as rents hit a record high ”. In November this year The Times quoted that the average monthly UK rental was £ 1,175 , an increase of 11 % in a year and demand continues to heavily outweigh supply .
Which are the best UK property Markets to focus on ?
The best UK cities for buy-to-let property investment are those that offer high rental yields , good quality of life for residents and prospect of above average house price growth potential whilst remaining affordable . Birmingham and Newark-on-trent , are two examples we have identified as great options . Birmingham is the UK ’ s second city after London and the ideal location for investors who want quality property in a top UK city but are not able or willing to pay London prices . The city is undergoing billions of pounds of regeneration with inner city development , including the new HS2 railway network ; which will connect London to Birmingham in under an hour ! The city has become a hotspot for companies looking to relocate : Goldman Sachs , HSBC , Deutsche Bank to name a few . In the past decade house prices have risen 56 % and it is expected house prices will increase a further 20 %
SA Real Estate Investor Magazine DECEMBER 2022 / JANUARY 2023 135