UK Property Investment for Beginners

Gordon Franks, Managing Partner at Lifestyle Property International, outlines everything you need to know

People are generally aware of the benefits of property investment and the returns it can offer, but often feel overwhelmed about where, or how to start on their property investment journey. Today, I will aim to cover some of the main benefits that this asset class brings, as well as share with you what to look out for in order to maximise your investment.

Where to invest?

Location, location, location is a mantra often used with property and, to a certain extent, it’s true, but the first thing to do is to remove personal, emotive thoughts and focus on what and where will make you the returns you are looking for. This may be your home country, or if you’re looking for greater returns than from your home market, other countries, such as the UK, may offer a better yield.

UK property market outlook.

UK property is extremely popular now, and for good reason. Weak GBP, strong rental demand and a robust and stable exit strategy continue to attract overseas investors looking for consistent returns. According to the HMRC Land Registry, the average UK property price in 2012 was GBP 150,000, and today, average house price stands at GBP 270,000. Within the period of 10 years, house prices have nearly doubled.

Is UK property for me?

Investors come from many backgrounds, from those considering a move to the UK at some stage, to people who have no desire to live there, and anywhere in between. They all seek safe and stable returns and see the attraction of UK property. Couple that with relatively low entry points compared to Hong Kong, and it looks very attractive as an investment destination.

Best cities in the UK to invest in now.

Once comfortable to invest in the UK, the next decision to make is where to invest. London has always been the obvious choice, but it has also seen a lot of growth over the last decade and although this growth has slowed, rents haven't kept up with the rapid growth. That has led to yields falling, and investors looking elsewhere for returns. It is not just buy-to-let investors who are considering alternatives, but also companies and corporations who are increasingly looking to relocate all or part of their workforce outside of London. This means other major UK cities, such as Birmingham and Manchester, are seeing large-scale investment which is pushing demand for quality housing up.

Predictors of property investment success.

As with any investment, including property, you need plenty of good reasons to get involved. Below are just some of the factors which can make certain projects or areas stand out and help increase returns. Factors to look out for are: • Government regeneration • An increase in connectivity through transportation links • Relocation of workforces or increased population growth • A steady demand for tenants, if rental is the goal Whilst these factors do not guarantee success, they lay a good foundation for it. Ultimately, there are many things to consider when purchasing property, particularly when you are doing so from overseas. As always it pays to get good quality, professional advice.

Lifestyle Property, founded in 2007 and headquartered in Hong Kong, has helped many clients become comfortable with the process of purchasing property overseas. The team assists with the purchase, mortgage and rental of properties for clients to create wealth through property. For more information, email info@lfsproperty.com or visit www.lfsproperty.com.