How to Find the Right UK Property Investment
Locating your ideal UK property investment
Sometimes, it feels like finding an investment opportunity suited to your needs and requirements is more hassle than it’s worth. You can spend days trudging across the web only to get bogged down by a deluge of numbers, stats and vague information. Sifting through this sea of information can sometimes feel like a bit of an insurmountable task. Trust us we’ve been there. Thankfully, we’re on board to give you a helping hand and give you a few pointers on what to look out for when making an investment.
High-interest rates and low LTVs
UK property investment is on the up, and many people across the country are joining in on an increasingly popular trend. Over the last decade, alternative finance has boomed, mainly thanks to the 2008 financial crisis. Many people are now seeing alternative finance as a great substitute to the typical fare. When people consider making an investment, it’s not surprising that the first thing people cast their eye to is the interest rates on offer.
When people make an investment the savvier of the bunch are often all too often to get to grips
Higher interest rates are generally riskier, but tend to generate higher returns; providing the investment doesn’t fall through. When looking at investment opportunities, it’s also important to consider the loan to value of the investment opportunity. When the LTV is lower, the cushion to which you would receive if an investment fell through is higher. And, on the occasion that an investment does come crashing down, it’s always good to have something soft to land on!
The North. A derelict and neglected corner of the UK. Its winding streets give way to the remnants of a once industrious region. Once renowned for its booming cotton industry, the North West has been reduced to a legacy of pies and flat caps, or so you think. Despite, what you think, London is no longer taking centre stage. Manchester and the rest of the North West are fast moving the south out of the limelight, and have quickly set themselves up as the new centre for industry and commerce. Manchester, for example, achieves an impressive average rental yield of 6.02%. London, on the other hand, rakes in an average yield of just 4.86%, indicating a stark contrast between the two regions.
The Overspill Factor
The overspill factor is an especially relevant factor to bear in mind when looking into UK property investment. Essentially, the overspill factor is a metric that relates to people moving into areas when an adjacent ‘in-demand’ area is full. In Manchester, for example, those who are looking to live in the city centre, in places such as Deansgate or Castlefield, may actually be put off by the high prices in the area, and as a result, live in a nearby area such as Trafford. In time the popularity of such an area may very well increase, due to an influx of people moving to the location.
On a larger scale, this may be applied to the likes of London, and many people’s inability to afford to live in the capital. Manchester is a much more affordable city that offers similar living conditions and a comparable way of life. Those who can’t live in London may very well choose to live in Manchester and in turn, increase the popularity and demand of the area over time.
The Regeneration Game
It is not only by investing in an already flourishing area that you can increase your odds of locating a successful UK property investment, but by investing in an area that is ‘up and coming’ can sometimes, prove to be just as lucrative. Determining whether an area is about to become a little bit more upmarket is relatively simple. Here are a few telltale signs.
- The emergence of nicer supermarkets (the Waitrose effect)
- The emergence of nicer restaurants
- The introduction of large employers and new jobs to an area
- New amenities that have been appointed by the council
For more information on our range of current UK property investment opportunities currently available click here.