What factors should you consider when investing in UK property?

Investors are always on the lookout for the most stable and consistent opportunities. After all, the ultimate motivator for most investors is to grow wealth through a stable passive income. Property investment has proven time and again to be one of the most reliable forms of alternative income, generating further growth through capital appreciation.

Over the last decade we have seen the demand for new-build investment property continue to far outstrip supply. As more global investors look at the relative stability of the UK property market, unstable economic conditions in other countries has motivated more investors towards the UK property market.

So what should you consider when making that first investment?

Conducting comprehensive market research is crucial to help identify locations with promising investment opportunities. The most likely indicators will be demand for rentals, growth in property values, the number of local job openings, infrastructure planning and neighbourhood amenities.

Once you have found the location that best fits your specification, management of your portfolio will be the next essential factor to consider. Choosing between hiring a seasoned property management company or managing the property yourself is an important detail to get to grips with, given the responsibilities required from local government when becoming a landlord.

You should also keep an eye on market movements and analyse your investment portfolio on a regular basis. Keep up with local property market circumstances, regulatory changes, tax ramifications and potential substitute property assets that can broaden your portfolio.

When it comes to investing in property in the UK, you have a lot of potential options. Residential, commercial, HMO (Houses in Multiple Occupation), student housing, holiday lets, supported living and property funds are all popular property options for investors.

Since residential property is the asset class with the largest stock and the most readily accessible financing and mortgage alternatives, it is thought to be the most conventional path. There are a host of financial options for this sector that can be unlocked with the right deposit amount.

Investing in more specialised property classes like vacation rentals, assisted living and student housing is unlikely to be financed by conventional loans or mortgages. Student property does have the added advantage of offering much lower entry prices, enabling investors to complete full cash purchases. Student property is one of the UK’s fastest growing spaces, and for investors looking for some of the best property returns available student property should be a perfect fit.

If you would like to know anymore about any of the topics discussed in this article, please reach out to a member of the IPG team today.