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How to make your property buy to let investment work in the UK market

Investing in buy-to-let properties in the UK can be a lucrative endeavour, but it’s essential to approach it with careful planning and consideration. Here we set out some key steps to make your buy-to-let investment work in the UK market. You must research the Market. Start by researching the local property market in the area where you intend to invest. Look for areas with strong rental demand, potential for capital growth, and amenities that attract renters. Setting clear goals allows you to define your investment goals, such as your desired rental yield, investment timeline, and target tenants. Understanding your objectives will help guide your decisions. Budget Wisely. Calculate your budget, including the purchase price, legal fees, stamp duty, renovation costs, and ongoing expenses. Be realistic about your financial capabilities. If available explore your financing options, whether it’s through a buy-to-let mortgage or other means. Consider speaking to a financial advisor or mortgage broker to find the best deal for your situation. Some deals are cash only, these often offer long term leases and decent returns if your able to consider. Select a property that aligns with your investment goals. Consider factors like location, property type, and the potential for future growth and calculate the potential rental yield by estimating the monthly rental income and comparing it to your initial investment. A good yield is typically around 5-8%. Understand the legal and tax implications of buy-to-let investments in the UK. Consider consulting with a tax advisor to optimize your tax strategy and decide whether you’ll manage the property yourself or hire a property management company. Management can be time-consuming, so factor in the cost of professional management if needed. Screen tenants carefully to minimize the risk of non-payment or damage to the property. Ensure that tenants meet all legal requirements and have a good rental history. Regularly maintain the property to keep it in good condition. Promptly address any repair or maintenance issues to maintain the property’s value and appeal. Keep an Eye on the Market, monitor the property market for changes in rental prices and demand. Stay flexible and be willing to adjust your rental rates as market conditions fluctuate. Consider diversifying your property portfolio by investing in different types of properties or in various locations to spread risk. Buy-to-let investments are typically a long-term endeavour. Be patient and expect that it may take several years to see substantial returns. Its important to develop an exit strategy. Understand how and when you plan to sell the property and under what circumstances. Keep up with changes in the rental market, property regulations, and tax laws. Being informed allows you to adapt to market conditions and legal requirements. Investing in buy-to-let properties can be a profitable venture when approached wisely and diligently. It’s important to do your homework, stay organized, and be prepared for the responsibilities that come with property management. Consider seeking advice from experienced property investors or professionals to help you make informed decisions. Here at Global Investments, we have readymade property investments for you. Tenanted ready property offering 8% and 9% net returns along with 10-to-25-year leases. Get in touch with us to find out more.

Bank of England hold borrowing rates at 5.25%

It’s interesting to hear about the Bank of England’s decision to hold interest rates at 5.25% and the implications it might have for the UK’s borrowing and investment landscape. Investing in real estate can indeed be a viable option for those looking for steady returns. Let’s take a closer look at the options we have available right now. Investment options in different cities with varying price points and potential returns can offer investors some diversification. Here are a few considerations for potential investors: 1. **Location**: The location of a property is crucial in real estate investment. We have properties in the local housing market in Middlesborough, Lincoln, and Hartlepool to understand the demand, rental market, and potential for property appreciation. 2. **Government-Backed Tenants**: Having government-backed Housing Association tenants can provide a sense of security in terms of rental income. However, it’s still important to assess the quality of tenants and their ability to pay rent consistently. All our tenants are in this category. 3. **Lease Terms**: A 10-year lease can provide a stable income stream, but it’s essential to understand the terms and conditions of the lease. Are there any rent increases built into the lease? What responsibilities do you have as the property owner? All our leases are ten-year terms. 4. **Running Costs**: Make sure you have a clear understanding of all running costs, including property management fees, maintenance, insurance, and property taxes. Subtract these costs from your rental income to determine your net return. All our tenancies include most costs paid by the tenants. 5. **Market Research**: Conduct thorough market research to assess whether the purchase prices for these properties align with current market conditions. Are there other similar properties available at better prices or with better potential returns? We have carried out extensive research in order to offer you the best options. 6. **Risk Assessment**: Consider potential risks, such as market fluctuations, vacancies, and unexpected maintenance expenses. Have a contingency plan in place. We can help with your due diligence covering any questions or concerns you may have. 7. **Exit Strategy**: Think about your long-term goals and exit strategy. Are you looking for a steady income stream, or do you plan to sell the properties later for capital gains? We can help with a future sale on your behalf as an exit plan. Before making any investment decisions, it’s advisable to consult with a real estate expert who can provide personalized guidance based on your financial goals and risk tolerance. Additionally, conducting due diligence, including property inspections and legal reviews, is essential when investing in real estate. Here at Global investments, we are always available to work with you in finding the most suitable opportunity for your needs and requirements. Remember that all investments carry some level of risk, and it’s important to make informed decisions that align with your financial objectives.

The Benefits of long-term property investment in the UK

Long-term property investment in the UK can offer several benefits for investors. Here are some of the advantages: 1. **Steady Income**: Rental income from investment properties can provide a steady stream of cash flow, which can be particularly attractive for retirees or those looking to supplement their income. 2. **Appreciation**: Historically, property values in the UK have tended to appreciate over the long term. While there can be short-term fluctuations, holding onto a property for many years can result in significant capital gains. 3. **Portfolio Diversification**: Real estate can be a valuable addition to a diversified investment portfolio. It often behaves differently from other asset classes, like stocks and bonds, which can help spread risk. 4. **Tax Benefits**: In the UK, there are several tax advantages to property investment. For example, you can deduct certain expenses from rental income, and there are various tax relief schemes for landlords. 5. **Inflation Hedge**: Real estate can serve as a hedge against inflation. As the cost-of-living increases, rental income and property values often rise, helping to preserve the real value of your investment. 6. **Control**: Property investment gives you a degree of control over your asset. You can make decisions about property management, renovations, and when to buy or sell, which isn’t always the case with other investments like stocks. 7. **Retirement Planning**: Many people use property investment as a means of building wealth for retirement. Owning income-producing properties can provide financial security in retirement. 8. **Passive Income**: Once a property is set up, it can generate passive income without requiring constant attention, making it suitable for individuals with other full-time commitments. 9. **Demand for Rental Properties**: In some areas of the UK, there is a strong demand for rental properties due to factors like urbanization, job opportunities, and a shortage of affordable housing. This can translate into a stable tenant pool. 10. **Long-term Stability**: While there can be short-term fluctuations in the property market, real estate tends to be less volatile than stocks, making it a stable and predictable long-term investment. It’s important to note that property investment also comes with risks and challenges, including property management, market fluctuations, and liquidity issues. Moreover, the performance of any investment can vary greatly depending on location, property type, and individual circumstances. Therefore, it’s essential to conduct thorough research, consider your investment goals, and seek professional advice before embarking on a long-term property investment strategy. Here at Global investments, we have property experts on hand who can guide you through the different options, helping you achieve your long terms goals. Please contact us to arrange a call.

Why Buy Investment Property in England

Investing in property in England can be an attractive option for various reasons, but it’s essential to consider your goals, financial situation, and market conditions carefully before making any investment decisions. So why do people choose to buy investment properties in England? One of the primary reasons to invest in property is to generate rental income. England has a strong rental market, and demand for rental properties remains relatively stable. This can provide a steady stream of income to investors, which can be particularly attractive in times of economic uncertainty. Over the long term, property values in England have generally appreciated. While there can be fluctuations in the property market, investing in a well-chosen location can result in substantial capital gains over time. Property can be a valuable addition to a diversified investment portfolio. It can provide diversification benefits because it doesn’t always move in tandem with other asset classes, such as stocks and bonds. This can help spread risk. There are various tax benefits associated with property investment in England, including potential deductions for mortgage interest, property maintenance expenses, and depreciation. Be sure to consult with a tax professional to understand the specific tax advantages available to you. Some investors purchase investment properties with the goal of building wealth for retirement. Rental income can provide a reliable source of retirement income, and the property itself can be sold to fund retirement or passed down to heirs. Real estate is often considered a hedge against inflation because property values and rental income tend to rise with the overall cost of living. This can help protect your investment’s purchasing power over time. Property investors have more control over their investments compared to some other asset classes. You can make decisions about property management, maintenance, and when to buy or sell based on your individual goals and market conditions. England, particularly in and around continues to experience a demand for housing. Population growth, urbanisation, and immigration contribute to this demand, making it a potentially lucrative market for property investors. England has a well-established legal framework for property ownership and rental agreements, which can provide a level of security and predictability for investors. However, property investment also comes with risks and challenges, including market fluctuations, property management responsibilities, financing costs, and the potential for vacancies. It’s crucial to conduct thorough research, assess your financial situation, and seek advice from professionals, such as real estate agents, financial advisors, and lawyers, before making any investment decisions. Additionally, consider your investment horizon and whether property aligns with your long-term financial goals. Here at Global Investments, we have a range of options for the overseas property investor. The majority of the properties we offer are Freehold and come with guaranteed net rental incomes up to 9% for as long as ten years. Please contact us and speak with one of our property investment experts.

Can UK Councils Home the Homeless alone, could Housing Associations fill the gap ?

The effectiveness of UK councils in housing homeless individuals can vary widely depending on several factors, including local policies, funding availability, resources, and the specific approach taken by each council. While some councils may excel in providing support and housing options for homeless individuals, others might face challenges that hinder their ability to effectively address homelessness. The UK government has made efforts to address homelessness through various initiatives, such as the Homelessness Reduction Act 2017, which places more emphasis on prevention and support for those at risk of becoming homeless. Additionally, there have been programs aimed at providing temporary accommodation and support services for homeless individuals. However, there have been reports of overcrowded and inadequate temporary accommodations, long waiting lists for social housing, and budget constraints that impact the ability of some councils to effectively house homeless individuals. Moreover, the causes of homelessness are complex and often interconnected, including issues like poverty, mental health, addiction, and lack of affordable housing, which can make it challenging for councils to address the root causes of homelessness. It’s important to note that the situation can change over time and from one location to another within the UK. Some councils may have more successful programs and resources dedicated to tackling homelessness, while others may struggle due to various reasons. Public opinion on how well councils are doing in addressing homelessness can also vary based on individual experiences and perspectives. If you’re interested in the status of how UK councils are handling homelessness, I recommend looking up recent reports, studies, and news articles that provide insights into specific council efforts and outcomes related to homelessness in different regions of the UK. Housing associations can play a significant role in addressing the housing crisis in the UK, but they are one part of a broader solution that requires collaboration between various stakeholders, including governments, local authorities, private developers, and social organizations. Housing associations are non-profit organizations that provide affordable housing and support services to a wide range of people, including those on lower incomes, key workers, and vulnerable populations. There are some ways in which housing associations can contribute to solving the housing crisis. Housing associations often focus on building and managing affordable housing units that cater to individuals and families who might not be able to afford market-rate housing. By offering affordable options, they help address the gap between housing demand and supply. Many housing associations provide social housing, which is rented housing typically provided by the government or non-profit organizations to those in need. This type of housing helps support individuals and families with lower incomes. Housing associations can develop mixed-income housing projects that include a combination of market-rate, affordable, and social housing units. This approach promotes social integration and reduces the concentration of poverty. Housing associations often offer additional support services to residents, such as employment assistance, education and training programs, and community-building initiatives. These services can help residents improve their overall quality of life and work towards long-term stability. Housing associations can be at the forefront of innovative housing design and sustainable building practices, helping to create housing that is not only affordable but also environmentally friendly and energy efficient. Collaborating with local governments, private developers, and community organizations allows housing associations to pool resources, share expertise, and create comprehensive solutions that address various aspects of the housing crisis. Housing associations can work on preventing homelessness by providing transitional housing and support for individuals at risk of becoming homeless. While housing associations have a role to play, it’s important to note that the housing crisis is a complex issue with multiple underlying causes, including housing supply shortages, affordability challenges, economic disparities, and more. Addressing the crisis requires a multi-faceted approach that involves policy changes, increased funding, land use reforms, and coordinated efforts among various stakeholders. Ultimately, housing associations can contribute significantly to alleviating the housing crisis in the UK, but their impact will be most effective when combined with broader systemic changes and strategic partnerships across the housing sector. Here at Global we and our partners work with Housing associations who take tenancies in our investors properties providing a long term net income with no voids to the investors and homes for those who maybe homeless without this opportunity.

There is a shortage of Social Housing in the UK currently

Shelter makes the point on their website (https://england.shelter.org.uk/) that the Social Housing (Regulation) Act is now law – but the government must do more. After years of demanding positive change to protect tenants, this legislation is a huge step forward. But stronger regulation alone isn’t enough. Investment in more social housing is desperately needed to help over a million households stuck on social housing waiting lists and the 100,000 households who are homeless right now, they say. The following is an extract from their proposals. There is a social housing deficit. More people than ever are struggling to afford a secure place to live. Yet, not enough social homes are being built. Over 1 million households are waiting for social homes. Last year, 29,000 social homes were sold or demolished, and less than 7,000 were built. In England, there are now 1.4 million fewer households in social housing than there were in 1980. As a result, millions of households have been pushed into the private rented sector, which has more than doubled in this time. Their facts and figures explain the issue. There are not enough homes in the UK. They state that a home is a fundamental human need. But right now, there are simply not enough good quality, low-cost homes available for everyone who needs one. Social housing on the decline. Social housebuilding in England is at its lowest rate in decades. Since 1991, there has been an average annual net loss of 24,000 social homes. Fewer social homes are built, compared to those lost through sales and demolitions. The result is a deficit in social housing. home cost 8 x average salary. There are many unaffordable homes. The housing emergency is affecting many people across the country. Priced out of owning a home and denied social housing, people are forced to take what they can afford. Even if it’s damp, cramped, or away from jobs and support networks. Social housing has declined as fewer homes have been built in England since 1923 Private housebuilding and social housing delivery peaked in England in the 1930s and again in the 1950s through to the 1970s, with house prices climbing gradually. Since the 1980s, construction of social housing and private homes has severely declined, with steep increases in house prices from the mid-1990s onwards. Housebuilding has almost halved in 50 years. In the 1960s, 3 million homes were built in England. Since 2010 the UK has built just 1.3 million homes. This is one reason why house prices are so high. And the UK relies on the private sector to build houses. And the goal of the private sector is to make a profit. When fewer people can afford to buy their own home, it affects the number of homes developers sell. And as a result, developers build fewer homes. Since 1990, as part of their developments, developers must contribute about a quarter of new builds as Affordable Housing (AH). So, when private developers don’t build houses, that means we’re losing out on social housing too. So, what is ‘affordable housing’? The government’s definition of Affordable Housing (AH) is housing for sale or rent for those whose needs are not met by the market. This includes housing that provides a subsidised route to home ownership and/or is for essential local workers. This definition complies with one or more of the following definitions, social rented housing – low rent and secure housing which is prioritised by need. Affordable rent – this is higher rent (80% of the market rate). It is less secure housing, prioritised by need. Subsidised home ownership. Starter homes. Discounted market sale housing. Shared ownership – housing where you buy part of a home and pay part rent. Since 2000, successive governments have known that too few homes are being built and set a target of 250,000 new homes annually. Each year this target is missed. UK is now short of around 1.5 million homes. The reliance on developer contributions to deliver affordable homes means that when fewer houses are built, social housing levels fall. Since the 1980s, the UK has seen private developers build less. Worse still, the government has abandoned social housing delivery to the private market, hoping profit-seeking developers will build social housing as part of their planning permission. Today, the government provides very little direct funding for social housing. That strategy has obviously failed and is the main reason why there’s such a social housing deficit. The percentage of renters in overcrowded homes has steadily increased since 1995. Since 2000, the percentage of renters in overcrowded homes increased from 4.5 to 7.6. People become overcrowded when there is not enough affordable housing available, or when housing costs are high. On top of this, many families up and down the country are forced to settle for temporary homes. People ending up in temporary accommodation (TA) has more than doubled in the past decade, It last hit this level in 2007, just before the financial crisis. This is when housing costs rocketed, even though the waiting list for social housing has flattened since 2012, the number of families in TA is back up. Since 2012, the waiting list for social housing in England seemed to flatten. However, it’s important to note this isn’t because desperate families were placed in social housing. The reason goes back to 2011 when councils purged their waiting lists due to a massive shortage of social homes. In 2011, councils were given more flexibility in how they managed their waiting lists. This included limiting lists to people who lived locally for a certain length of time. Many councils introduced new criteria to help manage how they provided social homes. If families didn’t meet these criteria, they were removed from council waiting lists. The impact is clear. Since 2012, more people have been forced into temporary accommodation because there are simply not enough social homes available. While need for social homes is up, the number built is falling. And while the government has spent money on so-called ‘affordable’ housing – homes that aren’t affordable

Why invest in a UK property with a housing association tenant

Investing in a property with a housing association tenant can offer several positive advantages, which may make it an attractive option for certain investors. Here are some of the key benefits: Stable Rental Income Housing association tenants are generally reliable payers, and their rent is often guaranteed by the housing association or local authority. This stable rental income can provide you with a predictable cash flow and reduce the risk of rental arrears or void periods. Longer Tenancies Housing association tenants often sign longer-term tenancy agreements compared to private renters. Longer tenancies mean less turnover and reduced costs associated with finding new tenants and preparing the property for new occupants. Lower Vacancy Risk The demand for social housing is usually high, which means there is a consistent pool of potential tenants. As a result, the property is less likely to be vacant for extended periods, minimizing income gaps. Less Management Responsibility In many cases, the housing association takes on the responsibility of managing the property and dealing with tenant-related matters. This can be a significant advantage for landlords who prefer a more hands-off approach to property management. Social Impact Investing in social housing through housing associations allows you to contribute positively to society by providing affordable housing to those in need. Some investors find this aspect rewarding as they can make a difference in their community. Lower Tenant Turnover Costs With longer and more stable tenancies, you can save money on advertising for new tenants, tenant background checks, and property maintenance between tenancies. Government Support and Stability Social housing is often backed by government policies and initiatives, which can provide additional stability to your investment. Government support can also mean fewer policy changes that could negatively impact your rental income. Potential for Lower Property Prices Properties in areas with a high proportion of social housing may be more affordable compared to those in high-demand locations. This could make it easier for investors to enter the property market and diversify their portfolio. Hands-On Housing Associations Some housing associations actively maintain and improve their properties, which can result in better-maintained homes and potentially higher property values. It’s essential to note that the advantages of investing in housing association properties can vary depending on the specific location, housing association, and prevailing market conditions. As with any investment, there are also risks and considerations to consider, such as potential changes in government policies, the financial stability of the housing association, and the overall condition of the property. Conduct thorough research and seek professional advice before making any investment decisions. If you would like to know more about investing in Housing association tenanted properties and receive our current availability, please get in touch.

A guide to buy-to-let properties in Manchester

There is a growing consensus that Manchester is fast-becoming the second city of the United Kingdom. Ever since the BBC announced it was moving a huge portion of its broadcasting operations to Media City in 2011, Greater Manchester has grown to become a Northern capital worthy of its status as a business and cultural hub. From a property investment point of view, Manchester is very much a tale of two cities. The modern, contemporary new-build apartment and commercial complexes that pepper the city are balanced by areas which offer examples of best-in-class urban regeneration. Viewed very much as a key location in the industrial revolution, from an architectural point of view Manchester still retains many of the older, characterful buildings of its past. Repurposed as trendy loft spaces in former Victorian warehouses, the regeneration of Manchester’s Northern Quarter in particular has been a resounding success. In the process creating an aspirational market for city-centre living in a location rich with amenities, achingly cool eateries and a vibrant cultural scene. The problem with Manchester is not so much whether to invest in a city with so much opportunity, but where is best to invest to make a good long-term return. Early doors investors in decades old city-centre developments have been the big winners from long-term investment due to the rapid rise of the Northern Economy centred around the city. With both easy access to transport and an international airport close by, urban developments have quickly sprung up to service a growing financial, professional and creative workforce who choose Manchester as their home. House prices in Manchester have responded swiftly as a result – with current prices sitting at an average of £248,704 – 21% higher than the previous 2019 peak, according to Right Move. Although technically a rival city to Manchester, Salford in Greater Manchester has been a particular benefactor of the significant investment into commercial regeneration of the wider area. The creation of the Media City hub on Salford Quays and the subsequent relocation of several major BBC departments was a positive signal to the rest of the UK. A signal that not only was Manchester a place to do business, but traditionally London-centric industries could benefit from the change. For relocating staff it meant lower house-prices than they were used to in the South and a cheaper cost of living. But for Salford, it led to a 44% increase in house prices in just 5 years. The study by Xendpay found that between 2016 and 2021, Salford had one of the biggest increases in house prices in the Greater Manchester area – signalling that long-term regeneration had indeed had a positive effect on the area. With so many districts of Manchester performing well from an investment point of view, it does beg the question is there anywhere left for property investors to go? The answer is quite simply, UP! City-centre living remains enduringly popular amongst professionals and students alike, and that is certainly the case with some of the UK’s finest attractions and amenities on the doorstep in Manchester. Indeed, Manchester retains one of the biggest city-living populations in the UK. With the bohemian Northern Quarter now a thriving and aspirational area for young professionals and city dwellers – new areas of the city have started to spring up in investment circles as the next new hotspot for urban dwellers and property investors. Ancoats is one such area. A formerly grimy industrial hotspot, easy access to the city centre means Ancoats’ former warehouses are quickly being transformed into trendy apartments as well as newer build contemporary schemes. Similarly, neighbouring New Islington has the feeling of an up-and-coming area that has not quite hit the up yet. However, with some incredibly smart new build developments underway, it won’t be too long till the Northern Quarter will be fighting to retain its title of top trendy Manchester spot. Perhaps the most highly anticipated new development in the city, though, is Manchester Waters – the stunning new waterfront apartments, which promise to become a vibrant community for those who want easy access to both Media City and Manchester City Centre. Want to find out more about our Manchester developments or any of our other buy-to-let investment opportunities? Get in touch today invest@globalinvestmentsincorporated.com.

Liverpool is a Northern Powerhouse for buy-to-let investors

Liverpool might be better known for its musical and maritime heritage than it’s thriving property and buy-to-let opportunities. But 2022 is a year of transformation and opportunity for this Northern city. Named in 2019 as the best location in the UK for buy-to-let yields, Liverpool’s thriving local economy and subsequent growth in rental demand has resulted in a strong performance for the city’s buy-to-let investors. Liverpool is a University city – housing upwards of 70,000 students across a number of key locations. With a permanent population of roughly half a million people, Liverpool is the 5th largest metropolitan area in the UK and part of the much-discussed Northern Powerhouse. The city has historically played a key part in the Northern economy. The River Mersey was a major gateway to the Irish sea, acting as one of the foremost maritime ports when accessing global shipping routes throughout the 18th and 19th century. Today, that maritime past is reflected in the city’s status as a leader in global logistics. The supply chain infrastructure in Liverpool continues to be a major attraction to the global businesses currently operating a base from the city. It is the access to the global economy that is rooted in Liverpool’s thriving start-up scene. The city is widely viewed as a growing hub for tech start-ups as well as a creative force in film and TV production. Liverpool is the base for both Lime Pictures and Hurricane films and employs thousands across its booming creative sector. The financial and professional services sector also have a growing home in the city – attracting thousands of young professionals to the city to take advantage of higher wages and the lower cost of living. A number of major banks and investment firms operate HQ’s from Liverpool as part of the city’s financial district, housing the largest wealth management centre outside of London. A Student City Liverpool has three Universities – The University of Liverpool, Liverpool John Moores University and Liverpool Hope University. As a student city and a popular place to study and live, the city has an established buy-to-let rental market for its growing student population. Popular areas for students include Wavertree, Aigburth and Allerton however, the Baltic Triangle has fast become a key location for students. Known as the creative and digital hub of the city, the Baltic triangle is just a 15 minute walk of the city centre. The ‘Baltic’ as it’s known by locals is a former industrial zone which has been transformed into an urban oasis of indie start-ups, canteen-style cafes and edgy nightlife in the warehouses that characterise the area. City-Wide Investment Boosts Property Demand Liverpool is a city which continues to focus on inward investment to improve infrastructure, cultural offerings and redefine the city environment. It is this investment that has created a thriving property market, which, buoyed by lower property prices than the South, provides the ideal platform for buy-to-let investors. Property prices are still relatively affordable compared to similarly-sized areas in the South of the UK. However, Liverpool has not been immune to post-covid boom in demand. Average prices in the city have risen by 23% since the previous 2019 peak, currently sitting at an average asking price of £202,272 according to RightMove. Liverpool still supports a thriving population of city-dwellers but the low prices and high rental yields has made the city a haven for buy-to-let investors. The strong local economy, student population and growth in key industries makes the city an attractive option for buy-to-let investors looking to take advantage of low property prices in a city with a bright future as part of the Northern Powerhouse. Want to find out more about our Liverpool developments or any of our other buy-to-let investment opportunities? Get in touch today invest@globalinvestmentsincorporated.co.uk.

The UK Housing market has seen its strongest January since 2005

According to a report in The Guardian Newspaper published on the 1st February 2022, britain’s housing market has made its strongest start to a year since 2005, with annual house price growth rising to 11.2%, according to the UK’s biggest building society. The Nationwide building society stated that the average price of a home hit £255,556 in January, the sixth consecutive monthly increase. The annual growth rate accelerated 0.8 percentage points from 10.4% the previous month, reaching its highest level since June. Robert Gardner, Nationwide’s chief economist, said: “Housing demand has remained robust. Mortgage approvals for house purchase have continued to run slightly above pre-pandemic levels despite the surge in activity in 2021 because of the stamp duty holiday, which encouraged buyers to bring forward their transactions to avoid additional tax. “Indeed, the total number of property transactions in 2021 was the highest since 2007 and around 25% higher than in 2019, before the pandemic struck. At the same time, the stock of homes on estate agents’ books has remained extremely low, which is contributing to the continued robust pace of house price growth.” House prices grew 11.2% in January over the previous year. Guy Gittins, the chief executive of the London-based estate agent Chesterton’s, expects the London market to remain at high activity levels in the first half of this year. “For many, 2022 feels like a new chapter and house hunters have been eager to begin the new year in a new home. Following on from a busier than usual December, London’s property market has continued to see record numbers of buyers registering throughout January. “While spacious properties or homes with an outside space remain sought-after, apartments in some of London’s more central boroughs are experiencing a steady comeback. This is particularly driven by professionals who are returning to the office and are seeking a nearby home as well as international investors and students.” According to Global Investments Incorporated who specialise in selling ready and off plan investment property to overseas buyers January has been busiest ever start to any year. Global investments sales in Liverpool and Manchester have been at their strongest with investors confident in seeing price rises as predicted by Savills of around 28% in the next five years in the Northwest and the higher rental returns than seen in the south of England. To arrange a private investment property consultation with one of our specialist UK property investment consultants please get in touch. invest@globalinvestmentsincorporated.com