Investors seeking alternatives to the depressed financial markets during the current downturn should take a look at the UK property. The alignment of several crucial factors has created the perfect sweet spot for overseas investors seeking better returns on their capital.
Sterling’s weakness
This year, the pound’s value has fallen to a 37-year low, making a UK property investment an attractive option, particularly for overseas investors holding US dollars. The dollar has been gaining strength all year and last week’s further fall in the wake of Kwasi Kwarteng’s mini-budget gives the dollar unprecedented buying power in the UK market.
Property prices falling
Data released last week by the Centre for Economics and Business Research (CEBR) forecasts a fall in UK house prices of 4.5% next year. The rising cost of living, increasing interest rates and a fall in confidence in the economy are all expected to keep property values depressed, creating opportunities to acquire UK properties at a favourable price point.
Rental yields sharply rising
A chronic supply shortage of rental properties is driving above-average rental growth of 12.3% across the UK and 18% in London! The undersupply of housing is unlikely to be resolved any time soon and landlords will continue to benefit from elevated rent levels.
Stamp Duty Cut
Overseas investors and non-UK residents will not benefit to the same extent as UK buyers but can still benefit from a reduction of up to £2,500 on their investment.
UK property – an attractive investment
Bricks and mortar is a lower-risk, long-term investment with outsize returns compared to many other assets. Over the last 60 years, the capital value of properties has doubled every six to nine years while providing regular income through rentals.
Another powerful reason to invest in property is that, unlike many other assets, the value of the property can be leveraged to raise finance for the purchase. For most investors, we can raise up to 70% of the purchase price through a mortgage.
If you want to learn more about UK property investments, please book a call with Michele or join our webinar on October 6
Join our upcoming property webinar
Historically UK property has proved an excellent long-term investment producing dependable yields through rentals and enhanced capital returns. Right now, the stars are aligning to create a perfect entry point for investors looking for outsize returns.
In this webinar, we will examine the UK and London property markets and explain the confluence of factors creating the perfect sweet spot for overseas investors to enter the market.
Topics covered include:
✅ Exchange rate advantage – Sterling vs the Dollar
✅ Attractive entry prices
✅ Soaring rental levels and demand
✅ The effect of the Stamp Duty cut
✅ Mortgages & financing for overseas buyers
✅ The investment process
✅ Landmark property investment opportunities in London, Birmingham & Brighton
Join our award-winning team and guest property expert Elliot Rowe to learn how you can benefit from this once-in-a-lifetime sweet spot to invest in UK property.
Please register to join us live and have access to the recording.
