The latest census shows the UK’s population has increased by a record 7% (4 million) in the last decade to just over 63 million – which is almost equivalent to adding the entire city of Manchester every year. Since 2002, demand for rental property has almost doubled. Rental properties currently account for just 11% of the total housing stock, which is great news for buy-to-let investors. History reveals that in times of uncertainty property has outperformed all other asset classes and is considered a lower risk investment choice. Here are our top six reasons why you should be investing in UK property:
Despite the economic questions over Brexit, the UK Government has made significant commitments to increase national infrastructure, creating an even greater rental demand across commuter areas, market towns and putting lesser known regions firmly on the map.
The UK is now more populated than any other major country in the EU or G8. With 402 people for every square kilometre, population density is four times that of France and in the next 20 years will be double that of Germany – a country, which is almost three times larger.
The latest Government estimates suggest that around 232,000 new properties need to be built in England every year to keep pace with demand however the number of new homes being built is now at the lowest levels since the 1920’s. This places a greater demand on existing housing stocks and new developments.
Demand for rental property has doubled since 2002. It is estimated that 20% of the UK population will rent within next five years, which is great news for buy-to-let investors.
Rising Rental Yields
Greater demand on the rental market has resulted in increasing annual yields. Stability in the UK property market is well known worldwide, and a property investment is regarded as a tangible asset by investors.
Wealth Creating, Income Generating
Unlike other asset classes, property enables you to gear your investment through investing a percentage of your cash rather than all of it. Property provides an attractive and sustainable income for investors, which if compared to a typical savings rate will provide income of up to 10 times that amount.