The UK housing market is seeing unparalleled growth in 2022, making now the perfect time to invest.
Investing in buy-to-let property has numerous positives to consider.
So if you are wondering why you should invest in UK property, here are five reasons it is becoming a popular way to expand a portfolio:
House Prices Are Rising
Over the past year, the average property price in the UK has risen considerably.
Savills reports a rise of 10.7% over the last twelve months, with an expected five-year increase in value of 17.4%.
The value of your property is important, as it will increase over time and allow you to make a profit if you choose to sell.
Therefore rising property value means now is a great time to invest, as you can make the most of the growth in the property market.
Rent Is Skyrocketing
Rental income is one of the main ways you earn money from buy-to-let properties, and so the fact it is rising is great news.
Across the UK, the average monthly rent is currently £1,127, which is up 9.5% from 2021. This growth is expected to continue for years to come as the cost of living rises.
As investors, this means your passive income will increase as time goes on. Naturally, this makes property investment a good way to generate long-term returns on your investment.
There Is More Demand Than Ever
There is a serious shortage of buy-to-let properties in the UK currently. The BBC has reported letting agents halving the number of available rental properties they have on their books due to the shortage.
Many potential tenants are offering above the asking price on properties due to the demand they face, meaning any property you invest in will likely not be empty for long.
More People Are Moving To Cities
As the UK recovers from the COVID-19 pandemic, more and more people are moving to cities for work as the nation returns to the office.
This is good news for investors as city properties are of higher value due to their location. This means investing in properties located in city centres is a great move.
You will be able to charge more rent due to the location, and you will find many renters looking for such attractive real estate.
Cities in the North West are becoming increasingly popular, as it’s a more affordable option when compared to London, so property investment in Manchester would be a great move for investors.
Various Ways To Invest
You may be put off by the initial cost of property investment, however, there are several ways of reducing it or spreading the cost over time.
There are mortgages available which can spread the cost of property investment out over time.
Also, investing in areas of the UK which have lower average property values like Liverpool means you can get great value properties for a lower price point than places like London.
If you would like to learn more about property investment, RWInvest offers more information on their website. With over 17 years of experience, they are one of the top property investment firms in the UK.