Watch: Why is UK property investment considered one of the safest asset classes around?

Why is property investment one of the safest asset classes around

2020 has been an extremely volatile year for traditional investments. The stock market and the commodity market have both experienced extreme fluctuations and investors have been exposed to high risks with no real asset value growth.

The buy-to-let market remained stable throughout the coronavirus pandemic. Whilst other investment sectors suffered during these uncertain economic times, property has naturally persevered as one of the only core dependable investment opportunities around.

Our Sales Director, Elliot Vure, is on hand to explain why the property investment market is considered a safer and more stable option than traditional asset classes.

The UK property market, specifically the residential and student sectors, offer investors consistent returns in a stable and secure market. The solidity, or bricks and mortar, of a property investment will always retain some kind of value and experience capital appreciation.

Figures from Nationwide state that house prices have increased on average by 8% per year since 1993, despite factors such as the recession, war and political unrest. These figures suggest that the property investment market remains a lucrative choice, especially when you invest in the right areas. Additionally, with buy-to-let investments, you will receive a regular rental income as well as capital appreciation.

The stability of the UK property market is down to a population that far outweighs the supply of housing. To meet the demands of a growing population, 250,000 new properties need to be built over the next 25 years in the UK, highlighting to potential investors the significant growth that this market will experience.

Investors should also look at locations in the UK that have experienced significant outside investment. In Manchester, for example, big businesses such as the BBC, Booking.com and Amazon have invested heavily into the area, creating thousands of jobs and hundreds of reasons for people to want to live in the city.

Another, and perhaps obvious, factor is to always research the developer you are considering investing with. If the developer has been around for a good number of years and has a proven track record, it shows that they are credible. Beech Holdings has over 20 years of history and just in the last two years alone we have paid out more than 6 million pounds of rental income to our investors around the world.

For investors interested in buy-to-let opportunities in the UK, we have a number of properties available for investment in the UK’s no.1 investment location, Manchester. If you would like further information on any of our investment opportunities, please don’t hesitate to get in touch with our team today.

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