UK Property Investment Overview
Last updated 03/04/2019
Whether you have an existing portfolio or you are looking to invest in UK property for the first time, you would do well to research your potential market before embarking on what is likely to be a major investment. While there are many and varied reasons behind the choices that investors make, they virtually all have one ultimate goal in mind and that is to gain the best possible ROI (return on investment).
Optimising your returns by choosing well
With so much property being developed in so many different areas, simply deciding on your best investment option can be a challenge before you even get started. The good news is that in this article we are going to highlight some of the UK’s property investment hotspots for the coming year (2019) and provide some explanation as to why they should be considered as an investment.
Investing in the key regional airport cities
While prices in the Capital have seen a recent slowdown, all of the regional cities continue to attract investment and on-going growth in the business sectors. Cities such as Aberdeen, Bristol, Birmingham, Cardiff and others support a lively commerce base in their own right. Their excellent transport infrastructures and close proximity to the regional airports also does much to enhance their desirability as potential property investment hotspots.
One of the fastest areas of real estate investment growth is the build-to-rent sector and it has created a whole new way of investing in property development in the UK. Institutional investors have been quick to jump on the demand by backing build to rent schemes as the private rented sector (PRS) continues to grow. Opportunities are now opening for high net worth and sophisticated investors to take advantage of this opportunity via joint venture equity investment platforms like JaeVee’s.
Universities and apartment living
Much of the expansion in this sector has been fuelled by the need for student accommodation in major University towns such as Liverpool, Newcastle, and others. Places including Cardiff and Luton have also seen continued development expansion in the build-to-rent apartment blocks that have been funded through similar investment initiatives.
Keeping a roof overhead
The bottom line is that people need somewhere to live and the UK is currently facing one of its most severe housing shortages since the last world war. Investors who are prudent enough to get on board some of these projects now will be able to do so confident in the knowledge that the country’s housing shortage is predicted to remain unresolved until at least 2030! Whilst Brexit is in the minds of investors, questions remain as to whether the impact of Brexit changes the current demand for property in the UK.
Identifying UK property hotspots by following the leaders
Alongside the traditional forms of property investment such as “off plan” to invest and multiple property portfolios that target the buy to let market, new, large scale developments have recently taken off at a pace. The good news is that the developers themselves are, in effect, already leading the way in identifying the hotspots on the investor’s behalf which as often as not acts to remove some of the uncertainty from the equation. The other positive benefit for investors in such hotspots is that they can now spread their investments and diversify across a much wider range of projects.
Please note, this blog post is not to be considered as investment advice. We recommend you seek independent financial advice and conduct your own due diligence before making any investment.