The state of affairs around rental and new buildings market in the UK

real-estate-investmentThe number of people renting apartments in the UK has increased from 2.15 million in 2004 to 3.35 million in 2010, which accounted for a 55% increase over the 6 years. This is primarily due to the high prices of housing and the reluctance of banks to lend money for acquiring housing. This situation leads to the fact that there is a significant increase in rents, which in turn increases the return on investment in the purchase of further property rental trend. According to a recent survey conducted by a number of the UK’s leading real estate agencies and company, aggregating conveyancing solicitor and allowing you to find a solicitor effortlessly, every tenth rented house in Britain in 2012 generated at least 10% of income, and the average yield across the country amounted to 6.2%.

The amount of foreign buyers in the UK property market is dramatically increasing. And while a decade ago the presence of wealthy foreign buyers in central London was the norm, now greatly increased the number of foreigners acquiring more affordable business-class housing in all areas of London and beyond. Currently, the share of foreign buyers in new buildings varies between 40 and 60%. These are mainly buyers from Asia, namely, China, Singapore and Hong Kong, CIS and Arab countries residents. Also, because of the sovereign debt crisis increased the flow of buyers from Southern Europe. In 2011, the value of real estate purchased by foreigners in London was estimated at £5.2 billion, exceeding the analogous index of 2010 to £1.5 billion to put London in the first place in the world.

High return on invested capital, is only one reason that London is a world leader in foreign investments in real estate. Perhaps more important is the fact that, historically, London has always been a “safe haven” for foreign investment in real estate. Customers who invest in real estate in London, considering their investment not only in terms of the real estate, and much more broadly: the rule of law, stability of power, leading the educational system, the rich culture, tradition and heritage contribute to a reliable accumulation of wealth.

A recent study by the University of Oxford revealed the rise in prices in central London is directly related to the growth of instability around the world. Thus, London real estate has become a delicious piece of pie for many wealthy investors looking to protect themselves from inflation.

London is a global brand; and not many cities can compete with the city in terms of infrastructure, level of life and business development climate. Even if alternative real estate markets exist, comparable with London on the level of openness and transparency, they are very not numerous. Investments in real estate of England and London in particular are now fairly considered to be mid and long-term investments. The combination of qualitative characteristics of London as a financial center (the financial center at least in Europe, comparable to the largest regional centers – New York and Hong Kong), legal, political, cultural and social hub, standing out with dynamically developing, reliable infrastructure and a particular urban landscape, just instill confidence in the fact that the status of London as a safe haven doesn’t raise any questions.

UK real estate opportunities: all you should know about investments

uk_propertyReal estate in London for investment purposes, liquid housing in the capital, formation of the market price, the size of dividends on investments – thorough understanding of these aspects is absolutely essential for the acquisition of truly competitive housing in the capital of England.

The prospects of acquiring real estate in London and general market trends

In 2014, real estate in London is the most attractive target for many international investors. To date, housing prices in the center have reached record levels, so £60,000 price per square meter of living space is now a reality. The local prices are even higher than in Hong Kong or New York, which was considered to be the most expensive during the periods of stagnation.

Diversification of investment with minimal risk in real estate in London

Such a stable price growth is a measure of the ability of capital to diversify. Thus, by investing in residential facility in the capital will almost certainly guarantee recoupment within a few years: its value will rise and it will be possible to carry out operations with resale to drive dividends.

Real estate in London has always been distinguished by the high cost, even in the period from 2009 – 2012’s; when the crisis has hit the global real estate market, real estate in the capital of England didn’t lose their price positions, and moreover, it has steadily started moving forward. Thus, the luxury property in the center is offered at a price higher than in the regions by about 5 times. Properties in regional cities in the UK exceeded the the cost of residential facilities in other countries by at least 2 times. All this has ensured the influx of buyers in the market and steady growth of new investors in the country. Just in the last few years, the market attracted more than 110,000 new customers.

By acquiring property in London, investors can at least count on positive recoupment prospects in the nearest future. According to the consulting agency Knight Frank, from 2015 to 2016 there was a sharp price surge in the residential sector. Indicative price growth has reached 4.3% mark compared to this year. In general, if we consider the medium-term increase of the price indices, by 2018 the cost will increase by 35.8%. Analysts themselves, making preliminary forecasts in 2013, expected to observe 27% price growth., a platform that allows you to find a solicitor, predicts that conveyance solicitors services will remain at the same mark, although it is counted in percentage (up to 3%).

Investors themselves have high expectations on recoupment by real estate in London and lay investors themselves, which is evidenced by a recent study conducted by Zoopla. The aim of study was to examine what investors expect from the purchase of housing in the capital. Approximately 92% of respondents stated that they expect a rise in prices in the first quarter of next year, which is 65% more as compared with the first quarter of this year. Only 3% of respondents believe that real estate will fall in price. According to the same research, but carried out in 2012, the respondents did not have such confidence in the market, and about 19% of potential buyers have stated about the possible price falls.

From this standpoint, property in London has a very ‘high credibility’ on the part of investors from abroad. And it is confirmed by the number of transactions – about 65% of all the transactions for the purchase of residential buildings of the capital is carried out by foreigners. These people were mainly natives of Asia and the Middle East; high activity of buyers from the CIS was also observed. The latest category is primarily interested in the elite sector, so it is admitted that every 15th house acquired at a price of £10,000,000 was associated with Russian-speaking investors.