5 Reasons to Invest in UK Real Estate
The property market has long been an important element of the UK economy. It has proved to be an excellent way to generate and accumulate wealth over the long term, either through personal investment property portfolios or as a component of one of the UK’s many institutional portfolios and pension funds.
Here are our top 5 reasons why should you invest in UK property.
Housing Shortage – In the UK, too few residential properties have been built, which means there is a huge shortfall of homes available and the demand is increasing. At current building rates, it could take 15 Years for supply to catch up with demand.
Legal Strength – Established over hundreds of years, property law in the UK is considered one of the most robust legal frameworks in the world. Designed to keep buyers and sellers safe, it offers security on sales.
High Yields – Rental income generated from UK Property offers strong yields. Investors should focus on the build-to-rent market. Well designed apartments in prime city center’s offer a safeguard against another global recession, where demand in smaller cities could significantly drop and effect returns.
Lack of Land – There is a strong future of long-term capital appreciation with UK property due to the notable shortage of land available to build new projects. Working hand-in-hand with the lack of housing, this keeps demand high and ensures consistent rentals.
Decreased Value of £GBP – Since the UK’s vote to leave the EU referendum, the pound is at its lowest level against the dollar in 35 years. This provides overseas investors with a unique opportunity to take advantage of the UK real estate market. If the GBP/USD rate recovers to 2021 levels, investors can make 10% simply on the currency change!
The continuing appeal of property as an asset owes much to simple laws of supply and demand. Housebuilding rates continue to fall well below the government’s 300,000 annual targets, while demographic and socio-economic changes have pushed housing demand to record levels.
Get in touch with your Atlas representative to find out more on our latest UK opportunities.
