A Guide to Investment Property In UK

Photo courtesy of Melandjohnkots

From the Beatles to Big Ben and beyond, the UK holds special interest to holidaymakers, expats, retirees and investors from all over the world.  With its very cosmopolitan atmosphere, booming cities and beautiful countryside, this nation has long stood out on the property investment market as well.

Its longstanding governmental stability, very strong economy and ever-growing tourism industry combine to attract investor interest.  We at Nubricks.com cite the following 10 reasons as those boosting investor confidence in investment property in the UK : -

1) The UK’s Longstanding Governmental Stability Appeals to Property Investors Massively

The UK enjoys a constitutional monarchy form of government.  Democracy is deep rooted in the country’s psyche; indeed, English Common Law forms the foundation for many other governments around the world.  The longstanding, respected form of governance within the UK very much inspires investor confidence.  Whilst the power of certain political parties comes and goes, the overall stability in the UK is renowned.

2) The UK’s EU Standing Inspires Property Investor Confidence in Great Britain

The UK has been a member of the European Union since 1973, its standing in the international community and its willingness and desire to see European countries work together for the betterment of all very much increases investor confidence in the nation.  In addition to its EU standing, the UK is a longstanding member of the UN and maintains very close ties with the US, among other countries.  This bodes well for the overall long-term stability of the nation which makes potential property investors comfortable considering the British property market.

3) Economic Stability Makes Investment Property in the UK Appealing to Buyers

The UK’s economic stability is very appealing for buyers.  With a massive USD 1.9 trillion GDP and a healthy growth rate of about 3% per annum, Great Britain is considered stable.  This very much appeals to investors who seek markets that are sound.  The success of the British economy is largely attributed to such industries as mining, tourism, manufacturing and banking.

4) The Established and Understood Property Market in the UK Helps Inspire Investor Confidence

Unlike many other investment hotspots, the UK has a well-established property market with a longstanding track record.  This inspires investor confidence in Britain even in times of pricing downturns.  The ability of the nation’s market to rebound quite nicely and produce good rental returns in the meantime very much appeals to buyers looking for sound, low-risk purchases.  Whilst prices in the UK can be a tad on the high side, the return potential tends to make them worthwhile.  A flat in London, for example, can come in with prices of about GBP 250,000 or much, much higher, depending on the neighbourhood, but it can rent for yields of up to 7% easily.

5) The Ease of Buying Property in the UK Tends to Appeal to Investors

Buying property within the UK is generally a straightforward process.  Whilst prices are a little higher than other investment hotspots, recent drops are lending themselves well to buy-to-hold and buy-to-let investment strategies.  With rental yields anticipated in the 6% or higher range, the potential here remains strong for real estate investors.

6) The Geography and Climate Lend Themselves to Inspiring Investor Confidence

The UK enjoys a picturesque landscape.  With tons of coastline along the Atlantic Ocean, North Sea, Irish Sea and English Channel, this country’s waterfront is legendary.  It also enjoys beautiful lowlands, famous highlands, rolling hills and mountains.  The geography is complimented by a climate that is considered generally mild and temperate.  Whilst it does get cold, extreme temperatures are not typically a problem.  The geography and climate combine to make the UK appeal greatly to holidaymakers, expats and retirees.  This bodes well for investors looking at buy-to-let and resale strategies.

7) The Booming Tourism Industry Makes UK Property Investment Appeal

The tourism industry is very big business for the UK.  The country is an international destination that draws holidaymakers and business travellers alike.  With a travel and tourism industry that is expected to generate a whopping GBP 191.8 billion in 2007 alone, investors find confidence in this market.  Demand is anticipated to continue growing by about 3.3% per annum through to 2017 according to the World Travel & Tourism Council.  The UK enjoys a rather large slice of the overall world travel demand.  Its market represents 5.3% of the world’s overall figures.

8) A Host of Incredible Landmarks Drive Tourism and Inspire Investor Confidence

From Buckingham Palace and Big Ben to the Scottish Highlands, the landmarks that the UK boasts are reason enough for many holidaymakers to put this destination on their must-see lists.  The incredible influx of holidaymakers to take in the sights and even repeat visits from many bode very well for investors seeking property in the UK for their buy-to-let strategies.  It doesn’t matter whether a property is purchased in the biggest cities or in the quaint countryside, there is a very good chance holidaymakers are looking for accommodations in the location chosen.

9) Ease of Accessibility Appeals to Expatriates, Holidaymakers, Retirees and Investors

Travel to and from the UK is quite easy from just about any major city in the world.  Throughout Europe, low-cost airlines service the country’s many international airports.  Fares from other locations are a smidge higher, but it is even feasible for American travellers to enjoy roundtrip tickets for under USD 600.  In addition to air travel, the UK is readily accessible by train from most European cities and by boat as well of course.  Entry into the country is quite simple for EU and commonwealth citizens and for Americans.  The ease of travel into the UK makes it very appealing for investors who seek to cater to the holidaymaking market.

10) The Cosmopolitan Nature of the UK Appeals to Many Holidaymakers, Expats and property Investors

The UK has a strong cosmopolitan flavour to its population.  With one in 12 residents coming from other countries, according to British government estimates, the atmosphere here is very unique.  Whilst the UK does remain very British, it also is home to millions of people from almost every country imaginable.  Immigrants here come from as far away as Africa, Asia, North America and even from other European countries.  Add to this the strong and ever-booming holidaymaking market and most investors find the UK has an international styling.  This blending very much appeals to investors who want to cater to a growing population and an even bigger holidaymaking market.

The UK is not the least expensive investment market in the world, but this country offers a lot of stability and draws to make it very attractive for buyers.  With an ever-growing expatriate population, strong holidaymaking demand and reasonable buy-in prices in many locations as well as excellent financing, many find investment property in the UK very much to their liking.