Investing In Uk Property

by Keith Barrett - Date: 2007-05-03 - Word Count: 462 Share This!

The UK has a unique property market. With prices rising at amazing rates over the last decade, it presents a fantastic investment opportunity but how do you go about getting into the market? Help is at hand!

So firstly, let's look at what sort of investment opportunity the UK property market provides. Over the past 30 years, the average price of a property in the United Kingdom has risen by more than 2.4% per annum in real terms (that's after inflation is taken into account).

That's a formidable rate of increase. Compare it, for instance, to the rest of the European Union (EU). During the same period, the rest of the EU saw an increase in real terms of just over 1% per annum.

The figures show that UK house prices have been consistently rising over the long-term, but investors have also been able to make rapid profits in the short and medium-term. The reason for this is that house price growth has accelerated in the last 10 years, with annual increases of more than 10% being quite typical. There's also another factor to take into account when looking at investment potential: rental returns.

As well as making money from increases in property values, estate agents tell us that intelligent investors have been increasing the returns on their investment by renting out properties to tenants. The UK housing market is one where demand vastly exceeds supply, ensuring that there is a thriving rentals market. It is not uncommon to see rental returns in the UK of more than £750 (approximately $1500) per month in popular areas of the country.

Which brings us to the next question: where should you invest in UK property? There are large regional differences in the UK housing market, with the highest value property largely being located in the South East of England. This does not mean that there is not money to be made elsewhere in the UK but it does mean that there is a large demand for property in the south east, with high rental returns being possible in London and commuter towns nearby.

With London housing prices being seen by many Brits as excessively high, you may find that the best value investments are to be found in towns and cities with good transport links to the capital. The likes of Reading, Oxford, Milton Keynes, Winchester, Salisbury, Basingstoke and Woking all offer great investment potential for those looking to invest in the UK property market.

Although only a brief overview of the housing market and investment opportunities available in the United Kingdom, we hope that we've given you a small taster of what is available and why property could represent a great investment - be quick and be brave - you too could be making a significant income by investing in UK property.

Related Tags: property, real estate, investments, house, houses, housing, property investing, uk property, uk real estate, uk property market

Keith Barrett has written about the UK property market, with a particular focus on Winchester Estate Agents as part of his writing on UK property and investments. This article may be used by any website publisher, though this resource box must always be included in full.

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