Property in the UK remains a strong asset and wise investors are finding lucrative new opportunities and markets in 2018. Being aware of and staying ahead of the market is a great strategy to achieve the best capital appreciation and potential yields. To make the most out of your money and choose the best property investments in 2018, it is essential to be aware of these trends and incorporate them into your investment strategy.
Purpose-built student accommodation has continued to be one of the strongest sectors of the UK property market. With the cap on how many applicants a university can accept lifted, universities are growing and expanding at a rapid rate. They have become one of the biggest driving forces for change in many UK cities, with students making up an ever-larger percentage of the population. Housing for students is in short supply and purpose-built student accommodation is filling the gap. Student property can be a relatively low cost investment, with student properties like those offered by coming in under £50k with rental yields of 8%. Students are expecting more than ever before from their student accommodation and luxury facilities like on-site gyms, cinema rooms and a 24-hour concierge are common features.
Urbanisation and densification have been key influences on the property market for a number of years and according to a 80% think that this will continue. City populations are growing to double or triple what they were ten years ago. City boundaries are spreading too, with more and more post-industrial areas becoming part of the main urban zone. Property in city centres are experiencing dramatic capital appreciation as unloved industrial locations are regenerated into desirable residential areas.
The number of older renters in the UK has been rising steadily. The UK has an aging population with growing health problems which often means that their current homes aren’t suitable for them anymore. Over the past four years there has been a 13% increase in the number of older people moving into rented accommodation. the number of renters who are retired has soared by 200,000. These older renters often have a larger budget due to selling their house and are looking for modern, high quality, low maintenance rental property. Making sure your property could appeal to older renters by providing features like disabled access and a hassle-free process is a great way to appeal to these new renters. The number of older people in the UK is set to continue to rise so making sure your property is suitable for them is a sound investment for the future.
London house prices are continuing to slump in 2018 and investors are looking north for better returns and capital appreciation. Cities like Liverpool, Manchester, Sheffield and Newcastle in the Northern Powerhouse have been experiencing dramatic regeneration and investment. Improvements have been made to infrastructure, transport and business and Northern cities are experiencing a renaissance. Smart property investors are making the most of the currently low prices in Northern cities in areas which are soon to skyrocket in value. The amount of investment in the North comes from a range of sources, from overseas private investors to government projects, the North is rising, and investors should take note of the opportunities available.