As the UK continues on its roadmap out of lockdown and the number of vaccines administered reaches 78 million, the UK property market has begun to see the demand in the rental market within its major cities return to pre-pandemic levels as life returns to normal.
With the UK property market’s incredible and continuous growth throughout the first half of 2021, the buy-to-let market has provided solid and stable returns for investors across the globe. The increase in property values and the renewed demand in the UK rental market has also caught the attention of more UK expats and foreign nationals looking to build their investment portfolios and capitalise on the high rental demand exhibited across the country. As restrictions continue to ease and tenants continue to look for accommodation, now is the perfect time for overseas investors to invest in the UK property market.
Where is the best place to invest?
The increase in property prices has been seen across the UK nationally, however, nowhere has the growth been more evident than in the North West and North East of the country, with house prices in these regions increasing by a staggering 11.2% and 7.3% respectively on the previous year’s figures. The added benefit for investors in these areas has been that rental demand in the north has also been growing exponentially over the last few years as businesses and tenants continue to migrate away from the capital into the more affordable regional cities.
Throughout the UK property boom, Manchester has continued to outperform the other major cities and is showing no signs of slowing down, with rental demand in the city increasing significantly and average rents in the area rising by 10.2% on the previous year, making it a perfect opportunity for investors. Industry experts also predict that the demand for rental property in Manchester will not decrease anytime soon, as one of the largest drivers of the market is the fact that Manchester has one of the youngest populations in the UK. With 46% of the city centre population made up of 20 – 29-year-olds, ‘generation rent’ accounts for almost half of the city’s population, making Manchester a great investment location for the immediate and long-term.
Why is now the perfect time to invest?
With rental demand continuing to outstrip supply throughout the country, there has never been a better time for investors looking to expand their property portfolio to capitalise on the exponential growth that the UK is experiencing. Investment opportunities throughout the country are returning higher rental yields as rents continue to rise, and with rental properties in short supply, most properties are completing the tenancy application process in record times, meaning that investors are waiting less time to begin seeing financial returns whilst renting at higher prices to maximise their profits.
According to property website Rightmove, 2021 began with increased interest throughout the property market with 30% more enquiries for rental properties than the previous year. This demand is expected to grow continuously throughout the rest of the year and into 2022, further indicating the financial potential for investors in the current UK property market.
Why UK expats and foreign nationals?
According to international mortgage broker Liquid Expats, it has never been easier for expats to invest in the UK property market as expat mortgage products are now open to a much larger audience and are significantly simpler to move forward with in the investment sector, encouraging investors who may have considered buy-to-let investment previously to re-enquire and move forward with their investments.
The resilience that the UK property market has shown throughout the last year in comparison to other assets classes and investment opportunities, has solidified its position as the strongest and most reliable asset class in the face of economic uncertainty. Whilst investors who have traditionally put their capital into savings accounts and the stock market have seen huge losses over the last 12 months, the property market’s asset values and rental prices remained firm and grown in almost every location across the country – providing property investors with a stable income.
To learn more about the financing options for expats and foreign nationals, and the array of luxury properties we have available, get in touch with one of our expert property consultants today.