Why Property Investment Is Hot In the UK Right Now

With high property prices and swinging regulatory and tax changes, UK properties have been on the negative side of headlines over the past few years. However, with the recent growth of local and foreign investors in the country’s real estate market, investing in UK properties is quickly becoming more and more popular.

Why is it good to invest in a UK property right now? Here are some reasons why:

1. Capital Growth

Most people think and believe that UK property prices double their value every 10 to 15 years, but most of the time, this isn’t exactly true. The exact calculation and formula typically vary with the market’s differences. However, some UK cities have seen a significant price upsurge for the last three years.

If you’re interested in buying a property in one of these top-performing cities, you can visit the website of UK property investment companies, like Thirlmere Deacon, for more information.

According to TheGuardian, here are three cities in the UK that have seen such inflation:

  • Liverpool – Property prices in the city have increased by up to 11% since 2016.

  • Manchester – Property prices in the city have increased by up to 15% since 2016.

  • Birmingham – Property prices in the city have increased by up to 16% since 2016.

For example, a house in Liverpool purchased at 300,000 EUR in 2016 would then be worth 333,000 EUR in 2019 – excluding taxes, purchase fees, and other expenses.

2. Extremely Low-Interest Rates

The base interest rate of The Bank of England is currently at 0.75%. There are also more competitive buy-to-let lenders nowadays, making it inviting for investors who want to get a higher rate of return than the current rate of inflation at 2%. This can be an excellent opportunity for landlords and investors to improve or expand their property portfolio by buying more properties and also to acquire higher returns in a strong rental market.

3. Leverage

Leverage is using debt to finance the purchase of an asset. In property investment, this can be used to increase the return on the equity invested by acquiring a buy-to-let mortgage. And with low-interest rates, using leverage can enable property investors to produce a higher return on investment. This is not something you can do when you’re investing in other asset classes like trading shares and stocks or relying on bank interest with savings accounts.

4. Gearing

With low-interest rates, it’s now even easier to gear your property portfolio as a buy-to-let property investor. For example, if you have 200,000 EUR available, instead of buying a single property worth 200,000 EUR, you can use the same amount to buy four buy-to-let properties by depositing 50,000 EUR on each and utilizing buy-to-let mortgages.

If the property price inflates to 20% in that area where your properties are located, this means that instead of having a single property that’s worth 240,000 EUR, you can have four properties worth 960,000 EUR. Having multiple property investments with low mortgage rates can be an excellent way to increase your returns on investment.

5. Tangible Assets are Always Better

Buying brick-and-mortar properties have long been recognized as a good way to invest in the property market. This is because buying tangible assets has been proven to be advantageous for many people for hundreds of years.

When compared to other investments, such as shares, stocks, and other forms of intangible assets, buying brick-and-mortar properties can be a more practical way to invest your money. Why? Because you’ll always know where your investment is and that it’s not going anywhere soon.

6. Opportunity to Increase Value

Buying a property now allows you to have the ability to redesign, refurbish, extend, or add other features that can potentially increase its appeal or value if you decide to sell and exit within the next few years. This is something you can’t do with other asset classes.

But why should you consider buying a property now that needs refurbishment or is still being built? This is because when all the work and building is done, it’ll definitely increase the property’s value. Additionally, considering an off-plan property investment can also be a good idea, as the property’s value will surely increase once it’s built after a year or two.

Closing Thoughts

If you’re deciding whether or not to invest your money in a UK property, you can consider the things listed above to make your decision-making process easier. Also remember that in property investment, there will be risks involved. Therefore, it can be a good idea to consult a financial adviser when making such decisions.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

UK house prices growing by 2.5% according to Halifax

Nathan Emerson, CEO of Propertymark: “This slight dip in house prices will likely have been influenced as a direct consequence to the current state of the global economy. There will always be a need for people to move house regardless of international trading relations; however, many aspiring or current homeowners will no doubt be discouraged…
Read More
Breaking News

UK house prices dip slightly in May, but market remains steady

Average property price now £296,648 compared to £297,798 last month Annual rate of growth slows to +2.5% from +3.2% in April Overall house prices have remained stable so far this year Northern Ireland continues to lead annual price growth in the UK Amanda Bryden, Head of Mortgages, Halifax, said: “Average UK house prices fell by…
Read More
Breaking News

Estate Agent Content

Do you think that your estate agency / property business requires content? Is content marketing still a thing in 2025? Are you concerned if anyone will read your words? Is it worth investing in estate agent content? Businesses with blogs generate 67% more leads than those without. As competition for attention online increases it remains…
Read More
Breaking News

The cost of voids rises by £200 for England’s landlords

The latest analysis by Dwelly, one of the UK’s leading lettings acquisition and success planning experts, has found that landlords have been hit with a 26% increase in the cost of void periods in the past year, equivalent to lost income of almost £200. Dwelly analysed average void period data from March 2024 and March…
Read More
Breaking News

Breaking Property News 5/06/25

Daily bite-sized proptech and property news in partnership with Proptech-X. Demand Rises for Housing and Infrastructure Projects Rising demand for housing, infrastructure and energy projects across Wales has driven continued growth at Lichfields’ Cardiff office, which this year marks 25 years in the capital. The team of 17 planning professionals is one of the largest…
Read More
Breaking News

Construction continues to enjoy a season in the sun

Underlying performance is on the rise during Q.2 2025 Today, Glenigan, one of the construction industry’s leading insight experts, releases the June 2025 edition of its Construction Index. The Index focuses on the three months to the end of May 2025, covering all underlying projects, with a total value of £100m or less (unless otherwise…
Read More