Simply put - 3 S's: Security. Stability. Sustainable Profitability
If you had invested in a buy-to-let property in Manchester last year, your investment may have increased by almost 17% in value, as Manchester continues to see the most regeneration and hype, making the city’s property rise at the highest rate in England. However, it's not just Manchester.
If you had chosen a buy-to-let property in Birmingham a year ago for £250,000, this year it may already be worth £ 277,500, thanks to the city’s average yearly 11% capital appreciation rate. These are solid results based upon anyone's standards and it is assumed this trend will continue, making buy-to-let investments in 2022/23 still an excellent option to consider locating your savings in.
Just from capital appreciation alone, our clients are receiving a good ROI on their investments. This rapid capital appreciation the UK housing market combined with expanding infrastructure programs and robust legal and economic protections means the UK is particularly attractive from an overseas investor's point of view. It is also one of the most safest and stablest places in the world - government, regulation and compliance wise - to purchase property.
Rental prices in the United Kingdom grew by 1.8% between December 2020 and December 2021, representing the highest 12-month growth rate since July 2017. According to ONS (Office for National Statistics) www.ons.gov.uk, the average UK monthly rental as of 2022 is now £1,069. Eliminate London from this picture and private rental prices increased by 2.8% in the 12 months to December 2021, up from a previous increase of 2.6% in November 2021.
Considering a longer-term perspective, the ONS shows that UK rental prices have increased by a huge 12.0% since January 2015. Music to any investor's ears.
In 2021, an average 1-bedroom rental flat in London cost approximately £1,600 per month, while in Birmingham, rental prices range as low as £750 – £800 per month. Manchester rents sit somewhere in-between, at around £1,000 per month. UK rental value predictions for the period 2021 - 2025 are also both exciting and reassuring.
The under-supply of apartments and increasing rental demand in cities like Birmingham and Manchester, continue to magnify; pushing prices up for both rental and purchase, which is great news for investors.
Increasing rental prices are not only excellent from the perspective of passive income but also reassuringly support the fact that the market, in terms of capital values, is not over-saturated. This means there is still extra capacity for additional growth. Increases in rental provide either a growing yield based on the entry price, or a stable yield as the given asset price increases within the property itself. Both rising rents and property values show that further growth is possible with less risk of an investment bubble.
UK house prices have increased at the fastest rate since 2007 . Aside from the increasing rent prices, property owners are enjoying an increase in the overall value of their properties. According to recent data published by the ONS, average UK house prices grew by 10% in the year to November 2021.
Average house prices increased over the year in England to £288,000 (9.8%) from a year ago, heralding the fastest annual growth rate since June 2007. London alone is best avoided for now; this region currently records the lowest annual growth at 5.1%. Therefore many investors are now looking outside of the Capital for potential investments, which is where Impact Realty World comes in.
We exist to bring you the best strategies, opportunities, additional services including financing options and region-by-region guidance on how to benefit from the the boom phase in Britain since the lifting of the first coronavirus lock-down in 2020.
Thanks to the demand for better on-site-facilities as more people switched to working from home, incentives in the form of a Stamp Duty Holiday - allowing home-buyers to pay a reduced rate of the tax - and a soaring rise in overseas students and general population. These are all contributing to an ongoing increase in demand for UK property that sees no end in sight. We want to help you and your family be part of success. Request your FREE UK investing guide from us today.