2017 has been an interesting year for property investors in the UK. Brexit negotiations have cast uncertainty over the market, which combined with some significant tax changes, has made some buyers wary. However, as the pound plummeted, investment from overseas buyers rose, especially in the capital.
What will 2018 have in store for the property market? Here’s some expert predictions.
UK Property Investment Predications for 2018
- Property prices around London set to soar. 2016 saw some major developments in transport infrastructure; notably Crossrail (with Crossrail 2 likely to go ahead), Thameslink and HS2, which are now well underway. This has reduced commuting times into the capital, making several of the surrounding towns far more viable options for people working in London. We recommend that investors get in quick, before prices start to sky-rocket in earnest.
- Watch the northern cities. Cities such as Manchester, Liverpool and Sheffield have been performing strongly in the past year or so; with prices rising steadily. Even better, they offer the highest rental yield in the UK, making them an attractive choice for property investors. This is largely due to significant regeneration, not to mention the ‘Northern Powerhouse’ initiatives, which are bringing big businesses into the area.
- Less flipping. Thanks to the recent tax changes, ‘flipping’ property (i.e. buying with the intention of selling on quickly for a profit) looks likely to become a thing of the past. Instead, savvy property investors will focus on longer-term investment strategies; with an emphasis on growing portfolios to reap good rental yields, rather than purchasing, making improvements, then selling as swiftly as possible.
- Increased rental demand. As property prices continue to rise, so too do numbers of tenants – who can’t afford to take the first step on the property ladder. It’s predicted that by 2025, 60% of London’s population will be renting. As such, there’s huge demand for rented accommodation, and the UK’s buy-to-let market is struggling to keep up. If you buy in the right location, you’re likely to enjoy plenty of interest – so it’s a good time to buy.
- Student properties. Numbers of students in the UK continues to rise, which means increased requirement for student accommodation. This is a lucrative area to invest in – however, here’s a word of warning to bear in mind. Purpose-built student accommodation is becoming more popular, and if your student buy-to-let isn’t up to standard, you’re unlikely to gain much attention. Students expect a far better quality of living than they used to, and you’ll need to recognise this if you want to make a solid profit.
The Buy2Let Shop Limited
If you’re serious about UK property investment, it’s important to do your research and keep a close eye on market trends. The easiest way to do this is to attend a property investment seminar (our London-based seminars are free), and read as many relevant publications as possible.
If you’d like more information about investing in UK property, or want to view our range of competitively priced buy-to-let properties for sale, simply visit The Buy2Let Shop website today.