We’ve seen the housing sector respond favorably after the UK emerged from lockdown, with new surveys confirming a mini-boom’ in activity and the estimated number to sale for homes coming to market decreasing by 31%.
Why is this, since home values crashed during the recent recession? The main distinctions between today’s recession and the previous were that while the 2008 recession was financially motivated, this time it is motivated by a public health problem, through which the Government took a deliberate effort to close down some economies while placing steps in place to help companies and people affected. Importantly, policies to support and restart the housing market were also implemented.
It’s unclear if the fast recovery from the lockdown will last the rest of the year, but there are plenty of other reasons for investors to keep investing in the UK economy. Here are our top five reasons:
Positive House Price Predictions in the United Kingdom
Property prices in the United Kingdom are expected to rise 15% on average by 2024, according to some real estate agents. While London’s growth rate is well below this at 5%, investors seeking higher returns should look to the regions, especially regional areas. Furthermore, in numerous property sector predictions, the bulk of UK PLCs have shown ‘long-term hope.’
UK Undersupply Drives Demand
The UK still has a well-documented undersupply of homes against demand. This market seems to have risen since the UK began to emerge from lockdown, and some recent sources claim that the supply/demand gap is supporting the headline level of growth – resulting in the time to sell a home dropping 31% after the lockdown. Not only are home prices expected to increase, but rentals are also expected to rise. In the South East, rental growth is forecast to reach 11.5 percent and in Birmingham in the West Midlands we’re looking at about 12.5 percent from now until 2023.
Living Trends Points to Rentals
According to most of the real estate reports, almost 4 out of 10 ‘millennials’ are still privately renting at age 30, although nearly a third of the larger population is predicted to be renting well into retirement. Renters are expected to outnumber landowners in the UK by 2039, according to analysis.
Top European Property Investment Location
According to the Global Cities 30 Index, London is the second-best area in the world to invest in real estate, behind only Los Angeles in the United States. The only other European city in the world ranking is Paris. This success has reverberated across the UK economy, especially in recent years, with areas such as the London Commuter Belt and urban centers north of the M25, such as Birmingham, seeing a boom in investment (and not just in houses).
Rapidly Growing Population
The UK’s population is expected to grow to 74 million individuals in the next 20 years, indicating a significant increase in property demand.
If you want to invest in a UK property but don’t know where to begin, there is plenty of tools available that will provide you with numerous deal opportunities. One of the most popular is DealSourcing. This PropTech Software has streamlined the process and turned it into a website that acts as a personal property search engine. Thanks to algorithms and automation, the software can recognize properties from all over the internet and sort them by ROI.
You will save time, resources, and effort! The platform’s main function is its ability to locate High Yield Assets. DealSourcing.co is a must if you’re looking to invest in UK.
The software also estimates the return on investment on any property posted on Rightmove, Zoopla, or Gumtree, as well as highlighting properties for sale at a discount, saving buyers hours of research time. The most significant benefit of working with a property sourcer is getting access to the most dynamic real estate markets.
The Top 3 Most Useful Use Cases of DealSourcing.co:
- BTL & HMO Deal Analyser
They do not use a spreadsheet or graph to measure the cash balance for each transaction. Calculate the net gain, taking into account all costs, Stamp Duties, and revenue, as well as the possibility of losing money.
- Find High Yield Properties by Location
Data from over 500,000 homes in England, Scotland, and Wales are analyzed. Their key objective is to figure out which postcodes provide the highest buy-to-let returns.
- Find Negative Equity Properties by Location
If the value of a home is less than the amount owed on the mortgage, it is said to be in negative equity. They will assist you in locating such deals in your area.