Due to the Covid-19 outbreak, a lot of the world has now been in lockdown for a number of months. Unsurprisingly, this has left many feeling uncertain about the future, worrying about what will happen to the economy on top of personal health and financial concerns. However, while many expected that Coronavirus would cause a dip in investment activity, the UK property investment market is actually thriving in the midst of the pandemic, with a lot of interest from overseas investors in particular.
Here are some of the reasons why the UK property market is such a great option for overseas investors, and why you should consider making a UK investment of your own.
Rental Yields are High
Rental yields are one of the most essential elements of any buy to let investment, allowing investors to earn a large return on investment thanks to rental income. In the UK, a number of cities are known to offer some unmissable rental yields, and this is part of the reason why so many overseas investors are drawn to UK buy to let. Totally Money’s latest buy to let yield map lists the highest-ranking postcodes for rental yields, in which Liverpool, in the North West, comes out on top with 10% yields in the L1 postcode. Outside of England, the best rental yield area is Falkirk in Scotland with yields of 9.51%, followed by Glasgow with a 8.71% yield.
Certain property companies in the UK, such as RWinvest, offer buy to let opportunities with yields of around 8% which are assured for a set number of years. This means that investors are guaranteed to receive a high level of rental income after first purchasing the investment, and are also expected to continue generating large amounts of money after the assured period has ended.
House Price Growth is Imminent
House price growth is another key area to focus on when investing in property. By purchasing a property in an area that’s expected to see significant capital appreciation, you increase your potential returns by generating a large sum of money when you choose to sell the property. This is the magic of buy to let – the fact that you’re able to generate two types of return on your investment rather than just one.
House price growth is happening throughout the UK, with some strong predictions for the coming years. The fact that the Covid-19 pandemic has led to somewhat of a standstill for UK property price growth means that investors are currently able to purchase property at some of the lowest rates in years. A lot of property developers are offering huge discounts on their properties, and this has encouraged new investment from those from overseas. However, while house prices are taking a dip in 2020, predictions from industry leaders like Savills show that by 2024, UK property prices will have grown by 15.1%, with the highest growth expected in the North West with a 24.1% increase. By investing right now, overseas investors are taking advantage of maximum capital growth potential – something that’s not to be missed for when it comes to buy to let!
The Investment Process is Hassle-Free
When compared with buy to let investments in other countries, the UK investment process is pretty simple and hassle-free for overseas investors. Usually, when investing with a property company, overseas investors will be guided through the entire process and assisted with steps such as reserving a unit, arranging mortgages and solicitors, and finding tenants. It’s common for those investing in buy to let in the UK to use a property management company to help them run day to day tasks involved with owning a rental property, such as responding to tenants and dealing with any issues.