Why is it the best time to invest in UK real estate

Several factors contribute to making the UK a hot market for investing in real estate-

·      Post-Covid upsurge in demand

As a vast number of students gradually move to campus life, cities that house some of the best universities in the world like Manchester, Nottingham and Liverpool rely heavily on student housing rentals for the development of UK real estate. With students returning to campuses, the UK real estate market will witness a great demand for student accommodation which makes it an attractive proposition for investors looking to purchase a property.

·      Stamp Duty Land tax cut

Due to rampant uncertainties in the economy induced due to the pandemic, the government is taking measures to revive London real estate by a reduction in the Stamp Duty Land Tax which will be available on properties in England and Northern Ireland worth up to £500,000. This signifies that purchases now only pay 3% SDLT amounting to savings close to £15,000. Such a tax cut will not only benefit the UK real estate market in general but also, attract international and domestic investors to choose from a wide range of properties for sale in the UK.

·      High foreign exchange value

Investors holding dollar-pegged currencies always have an advantage by investing in the UK as they get good value against the denomination of money they invest in the UK real estate market. Properties continue to be a high-yielding and stable asset for the UK as it generally remains safeguarded against the vagaries posed by the game of demand and supply. It is a profitable deal for those possessing the Hong Kong Dollar or an Emirati currency to invest in UK real estate as exchange value ensures assured returns.

· Shock-absorbing sector

Real estate has proven itself to be a resilient option for any kind of investment. With Brexit, UK real estate had the peril of slumping due to adverse consumer sentiments affecting the market, but property prices hardly fell by a mere 1% of the estimated figures. Post-Brexit prices have been soaring higher than ever before which could be attributed to the sudden rise in demand for properties. Undoubtedly, investment in UK real estate comes with significant ROI for its stable demand, irrespective of external factors like a foreign policy change or economic fluctuations affecting them.

·      A market full of opportunities

The UK is a country rich in its heritage, culture and literature drawing tourists and investors from around the globe to be a part of the experience that it offers. Investing in the UK real estate market is a smart way to diversify one’s investment portfolio without bearing the risk of depreciation or loss as properties are always in hot demand for their growth and development potential. This is indeed the best time to buy property in the UK through alluring off-plan projects that come with great deals and offers at prices below the market rate for its investors.

·      Skyrocketing demand for rentals

Since the beginning of 2022, demand for affordable and luxurious residential properties has increased massively. The segment of the population looking for such properties is seen in the case of students and young professionals who are on the verge of starting their careers. The pandemic has also influenced an uptick in rentals due to a shift in work culture and attitudes of people who prefer to work indoors as opposed to travelling to their offices. Properties having high-speed internet connectivity and considerable desk space are hugely preferred by buyers and residents. Research estimates that by the year 2039, the number of renters in the UK real estate will surpass those owning properties so from the investment perspective the UK is certainly a profitable investment option.

·      Competitive Market

The average price rise for August 2022 is a 10% rise in property rates at £273,751 in the UK. “The Office for National Statistics uses data from HM Land Registry to record changes in the property market. It recorded a staggering 15.5% jump in house prices to the year in July 2022, up from 7.8% the previous month.” This pent-up demand is due to the limited supply of residential properties, preference for bigger spaces and low mortgage rates in the UK real estate market.

·      Right-to-buy scheme

Introduced in the 1980s, it provides tenants with a huge discount on a property to empower them to own a house. “In June 2022, Boris Johnson proposed extending the right to buy scheme, giving 2.5 million housing association tenants the right to buy homes at a discount.” It helps council tenants avail a discount of up to 70% of the market value of the property they have rented to live in. This will allow more people to purchase a property in the province of Northern Ireland as the scheme has been discontinued in Wales and Scotland. Such schemes further drive up the demand for properties leading to an impressive rise in the prices induced due to limited availability of stock.

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