British real estate investment

 British real estate investment

With the market taking a nosedive, it is becoming more difficult to locate investment properties in the UK.


Having said that, you can still find tens of thousands of homes listed for sale through online brokers or in your neighborhood. Whether you are looking to do a complete refurbishment or just buy-to-let, there are houses, flats, and apartments all around the UK that could be good investments.



You may find tools online that let you compare properties to recently sold houses in the same area, giving you an idea of the investment property possibilities in the UK. You should also be aware of the local average rental income for your property type if you are a buy-to-let investor seeking to purchase real estate.



A recent survey by Property for Life found that Midlands residents are showing a marked increase in their interest in purchasing UK investment property. The number of interested parties increased by around 25% between June and November, with the south-west region displaying the second-highest level of participation.



The long-term profitability of buy-to-let investments is highly probable, and investors should not doubt this. The rising demand for rental properties is not going anywhere, according to David, managing director of Austin Property for Life. This is due to a combination of factors, including an influx of new immigrants and a generation that waits to buy a home until they are slightly older. "The private rented sector is an essential part of the property market, also taking up the slack on social housing," he said.



The new flat rate of capital gains tax, which the chancellor proposed in his pre-Budget report, is also expected to have a positive impact for UK property investors in April 2008.



Despite recent bad news, buy-to-let investment property in the UK is bouncing back thanks to a scarcity of private rental housing in the southeast of the country. A shortage of houses is being reported by 57% of rental agents in the south-east, according to figures from the Association of Residential Lettings Agents (Arla). The national figure is 37%, according to the data from the third quarter of 2007, but for downtown London, it is closer to 66%. An influx of foreigners, an increase in the number of persons living on their own, and a tight housing market have all contributed to a high demand for rental properties in this area. This bodes well for the UK's investment property market, which has been historically challenging. Landlords also have shorter empty periods between tenants, as tenants themselves tend to stay for longer periods.



"Another sign of a softening in the sales market is the continued demand in the rental market," stated Ian Potter, head of operations at Arla. "These latest figures confirm that the private rented sector will once again be the safety valve for a housing market worried by the current financial uncertainties and the softening of house prices," the economist said.



Investing in UK real estate has its advantages, and one study found that landlords in revitalized regions typically get better returns than those in the UK rental market as a whole.



Purchasing investment property in the United Kingdom at auction is one option. Here, you are expecting to purchase a home for less than it is worth from someone who is eager to sell—it might be an individual owner or a business with multiple foreclosed properties—and does not want to go through the traditional real estate agency channels. There is usually some renovation required after purchasing a piece of property, but if you can make it seem better than the rest of the neighborhood, it could end up making you even more money.



Despite the fact that the UK housing market is currently experiencing a downward spiral, there are always opportunities to find investment properties at cheap prices.

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