The last few years have been heavy on the world economy. The global pandemic has affected a lot of factors that highly contribute to the world economy and are an essential factor too. One of these factors is the property markets. The property markets have been used constantly for investments buying or renting and they have constantly kept the contribution scales upright when it was required.
The UK government introduced a stamp duty holiday for property buyers for a limited period which allows the property buyers to save larger amounts of money through various percentages of discounts on the taxes. This type of approach was never seen in other property markets which led to a spike in the property transactions and is still prominent as of October 2021. But before investing in properties around the UK, you should be aware of a few factors.
These are some points you should keep under consideration while buying property in the UK :
- Capital Growth:
- This refers to the growth rate of house prices which are expected to go up and be around 5% in the next 12 months. The rental prices have also gone up around all over London, and are expected to rise as much as 3% in the coming period.
- Strong Local Economy:
- The UK economy is said to be stronger even amidst the ongoing pandemic and Brexit when compared to Europe and the united states.
- The mortgage rates and the funds for accessing and lending money to creditworthy buyers have seen a good spike due to the strong economical backup
- Supply vs Demand:
- Greater demands of property purchases were seen in Outer Prime London (OPL) in contrast with Prime Central London (PCL), the property prices around OPL have risen by 6.1 % while the prices around PCL are still steady.
- Stable, rising rental rates over time:
buying property in UK has one of the best infrastructure systems in the world, along with some of the best and high rated universities, and commercial districts.
- The property market of the UK is booming and is sure to be appreciated in the coming years which makes it a very good choice for investors to invest in buy-to-rent properties.
These are some of the essential factors one has to attain knowledge about before investing in the UK Property Market because it will also let them have an idea about how the returns are going to be like.