© 2024 Black Man­ta Cap­i­tal Part­ners S.à r.l.
/ Blog / Invest­ment in UK RE — Focus geared towards UKCH investment

Invest­ment in UK RE — Focus geared towards UKCH investment

The case for UK Real Estate Invest­ment in 2023: 

 

The proven track record and con­sis­tent growth of UK prop­er­ty val­ues, which are fore­cast­ed to con­tin­ue long-term, makes invest­ment in UK prop­er­ty one of the best ways to pro­vide long-term finan­cial secu­ri­ty as well as diver­si­fi­ca­tion to your invest­ment port­fo­lio, or even as a stand-alone invest­ment itself.

 

 

The North East of Eng­land con­tin­ues to have the low­est aver­age house price (£164,395), while York­shire and East/West Mid­lands are also on the low­er ends (£212,313, £255,144, and £255,202 respec­tive­ly). UKCH is an excel­lent invest­ment project to enter into this high growth poten­tial region, a project with a strong eth­i­cal focus and equal­ly strong invest­ment returns. The ben­e­fits of UK real estate invest­ment include:

 

✓ Great Britain is in the top five invest­ment des­ti­na­tions in the world. Prop­er­ty invest­ment in the UK serves as a hedge against infla­tion and also appre­ci­ates in value. 

✓ Reg­u­lar and increas­ing cash flow from rental income

✓ Long-term cap­i­tal appre­ci­a­tion and growth

✓ Tax benefits

✓ Diver­si­fi­ca­tion of invest­ment portfolio

✓ Increas­ing­ly thriv­ing rental market

✓ Can be a hands-off, pas­sive invest­ment strategy

✓ Right in the future to apply for per­ma­nent res­i­dence and even­tu­al­ly British citizenship. 

 

The GBP being weak­er in recent months has made UK prop­er­ty invest­ment more afford­able and attrac­tive to for­eign investors. This in addi­tion to the fact that the pound has been and is expect­ed to con­tin­ue to recov­er makes now a prime time to invest in the UK hous­ing market. 

 

Rental Prop­er­ties:

 

House price growth is out­pac­ing earn­ings by a wide mar­gin, which is push­ing up mort­gage repay­ments rel­a­tive to incomes. There­fore, the more Euro­pean style of ‘life­time rent­ing’, where in Ger­many for exam­ple 43% of peo­ple own their home, is becom­ing increas­ing­ly per­va­sive now in the UK. Research esti­mates that UK renters will out­num­ber home­own­ers by 2039. With the wors­en­ing cost of liv­ing cri­sis and con­se­quen­tial delayed and increased chal­lenge posed to peo­ple today in the UK to get on the first rung of the prop­er­ty lad­der, rent prices have con­tin­ued to increase as it increas­ing­ly becomes a land­lords mar­ket. The lack of prop­er­ties avail­able in addi­tion to rental prop­er­ties being tak­en up quick­er and quick­er, means land­lords are able to per­pet­u­al­ly increase rental prices, in many cas­es rent pay­ments are more expen­sive than mortgages.This unten­able real­i­ty makes invest­ments such as UKCH all the more appeal­ing as an investment. 

 

Rental prop­er­ties are large­ly reces­sion proof also, being a basic need to have a roof over one’s head, means demand always remains high. The high rental demand and thus high rental returns fore­cast­ed long-term is appeal­ing to investors that want to build a long-term port­fo­lio and invest in the UK. 

 

Eco­nom­ics 101: Sup­ply & Demand…

 

Giv­en the chron­ic short­age of hous­ing sup­ply in the UK, and the fact that the pop­u­la­tion is still increas­ing, the price of hous­ing is fore­cast­ed to con­tin­ue increas­ing for the fore­see­able future. The UK’s pop­u­la­tion is expect­ed to reach 74 mil­lion in the next 20 years and demand is grow­ing in the UK prop­er­ty mar­ket. Recent gov­ern­ment sta­tis­tics reveal that the UK pop­u­la­tion grew by an aver­age of 4 mil­lion between 2018 and 2021. Because of the fact that demand for hous­ing in Britain is not being met with sup­ply, there is ram­pant house price infla­tion, with the aver­age list­ing price being 308,698 GBP in 2022. 

 

Many region­al areas in the UK – espe­cial­ly those fore­cast­ing above-aver­age price growth (such as the afore­men­tioned mid­lands and north­ern Eng­land, see UKCH) remain afford­able in the cur­rent mar­ket and are expe­ri­enc­ing high demand as a result of low supply.

 

If you are inter­est­ed in this unique invest­ment oppor­tu­ni­ty, please vis­it https://blackmanta.capital/ukch/ for more infor­ma­tion on how to par­tic­i­pate in the ris­ing UK Hous­ing Market.