The UK property market in 2024 presents a robust investment opportunity with high tenant demand, stabilising mortgage rates, and increasing property values, supported by a transparent rental management system.
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The United Kingdom’s property investment landscape offers investors access to one of the world’s strongest and most resilient property markets. With a vast range of offshore property investment solutions available, Sable International is here to guide you in navigating the complexities of investing in UK property. The outlook for UK property investment looks excellent, and here is why.
Mortgage market
The Bank of England’s base and mortgage rates have risen recently due to an escalating inflationary environment. This has made purchasing property less attainable for homeowners and investors alike – but this is beginning to change.
A fixed interest rate can be secured now for as little as 5%. With 75% loan and 25% value, the entry-level for buying property in the UK is becoming much more achievable to investors looking to broaden their asset base and diversify their portfolios.
Tenant demand at an all-time high
A successful rental market relies heavily on demand, and fortunately, the need for rental properties is at an all-time high as we come to the end of 2024. Even with over 212,000 new homes constructed last year, a significant gap exists between supply and demand. With a major shortage of homes in the UK, we are seeing double-digit rent increases annually. In summary, there are far more tenants searching for homes than properties available, which is excellent news for new property investors, particularly in high-density urban areas and regions undergoing regeneration, where the demand is especially strong.
Property prices
New development property prices have appeared expensive for off-plan developments; however, prices have followed suit as have rental figures to achieve an overall positive investment case. Prices have been climbing steadily, and investors have begun to achieve solid returns in recent years, even with increased inflation. The resilience of the UK market has protected investors, and now, with the steady decrease in interest rates, more local buyers are entering the market and driving buying demand and, ultimately, property prices.
Rental markets and your tenants
A wonderfully regulated sector allows investors to buy property and rely on tenant demand to meet their rental obligations. From the start of a tenancy, one can register a deposit with an independent party, insure everything from sofas to monthly rentals, and ensure that the tenant is suitable from qualified referencing companies. The rental management market, especially compared to other jurisdictions, is one of the most transparent and protected globally.
Ready to start investing? Talk to Sable International’s Offshore Real Estate and Immigration Migration team at [email protected] or 27 (0) 21 657 1584
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