UK property | Services | Alexander Peter Wealth Management

Buy-to-let in the UK could help you profit from a rising market

The UK housing market is one of the most stable, secure, and popular asset classes in the world, delivering opportunities to build long-term returns.

Property forecasts predict the UK could see average house prices rise +21.1% by 2025. In some parts of the north of England, the expected rise could be as high as 28%. These figures have stimulated an increased appetite for UK buy-to-let property from international investors.

With rising house prices, demand for UK rental property has doubled since 2002 and is set to grow even further. Experts estimate that, within the next five years, 20% of the UK’s population will rent.

Profit from high rental yields or strong capital growth

To keep up with demand, government estimates suggest that around 232,000 new properties need to be built in England every year. Today, the supply is at its lowest level since the 1920s – which is placing even greater demand on existing housing stock and new developments.

On top of this, devolution away from the capital has meant that many of Britain’s northern cities have benefited from significant investment.

Now, with the rising rental market, investors can expect to profit from rental yields that exceed the UK average.

Focus on properties in regeneration areas

We focus on investment properties in regeneration areas that are likely to see good capital returns as well as good rental yields.

For example, properties in Birmingham are currently available from around £164,995 with a rental yield of 5%. The city will also be the first northern city to benefit from the new HS2 high speed rail link.

Split into three phases, the new railway will eventually link key northern cities to the UK's capital.

Phase1

Linking London and the West Midlands.

Phase 2

Linking the West Midlands and theNorth via Crewe.

Phase 2b

Completing the railway to Manchester, the east Midlands, and the North.

This is a long-term plan with HS2 not expected to complete until 2033 – investing now could see you reap even greater rewards in the future.

Understand the opportunities and what might be right for you

UK property is one of the most regulated and stable investments in the world and a weak pound is creating even greater opportunities for overseas investors.

With stable income returns from rentals sitting at around 6% and opportunity to see capital appreciation from investing in the right locations, now could be the ideal time to start a property portfolio or expand your existing property investments.

Our team of investment consultants have a wealth of knowledge and experience in the market and are always on hand to discuss the current opportunities and talk you through the investing process.