UK Property Investments
Why invest in UK property?
For generations, real estate has been the go-to investment – the trusted asset in times of wider uncertainty. And few other markets embody property’s strengths quite like the UK property market. Established over hundreds of years, this mature market is underpinned by a strong legal framework, while it is also a sector of high national importance for the UK government.
The UK property market has a long record of resilience and stability in times of wider economic uncertainty. While other asset classes can deliver high returns, risk is their biggest compromise. Property’s risk is significantly lower as performance is largely determined by supply and demand. Choose the right location, with the right amenities and management, and UK rental property is undoubtedly one of the best long-term investments you can make.
UK property investment in numbers
Annual rental growth in the UK reached 6% in 2023
Rental growth in the build-to-rent sector is set to rise by 22% between 2024-28
UK property prices are set to rise by 14% in the next five years
Housing shortfall is predicted to rise to 720,000 homes between 2023-28
Source: UK Residential Forecasts (2024-28); JLL.
The UK property market
In 2023, the UK housing market remained resilient in the face of rising interest rates and increases in the cost of living. For build-to-rent investors, rising interest rates led to an increase in rental income growth as more people remain in an already squeezed rental market.
Paired with the widely reported return to city centre living post pandemic, prime city centres like Manchester and Birmingham saw annual rental growth of 22% in 2023. Both cities continue to lead the growth forecasts for both sales prices and rental performance. With rapidly expanding populations, a strong job market and a high graduate retention rate, now is the time to discover investment properties in the UK.
Interested in UK property investment?
No matter where you are in your property investment journey, our UK Investment Guide 2024 is designed to help you make the best long-term decisions to drive the strongest returns.
Included in the Guide:
- Why invest in UK property?
- Where to invest in UK property
- How to secure a mortgage on your investment property
- Property taxes explained
- Expert tips and trends for 2024
Download our United Kingdom investor guide
Thinking about investing in UK property? Download our Birmingham investment guide to find out why the UK’s second city is such a prime investment opportunity.
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Best property investment areas
The Capital of the North
A standout investment prospect, Manchester leads the UK growth forecasts for property prices and rental growth over the next five years. Known as the Capital of the North, Manchester is a prime destination for tourism, business and sport.
- 19% annual rental growth in 2023
- Major global business hub with 80/100 of the Top FTSE Companies
- Five universities with 51% graduate retention rate
- Manchester’s population is rising at twice the rate of the national average.
The UK’s second city
Strategically located in the centre of England, Birmingham is one of the UK’s most important regional hubs. Home to the largest city economy outside of London, Birmingham is one of the best investment locations in the UK, leading the rental growth forecasts over the next five years.
- 18% annual rental growth in 2023
- Population is set to increase by 68,000 people by 2040
- Home to HQ of major companies including HSBC, Rolls-Royce, Jaguar Land Rover
- Five universities including The University of Birmingham, with a 41% graduate retention rate.
What our property investors say about us
I would certainly invest with Select Property again as all expectations were met, from beauty of the building and being a landmark, desired place to live in, and easy access to place of work or study.
The quality of staff at Select Property has always eased communication and resolution of queries. Legal documentation, payments and rental returns are always managed clearly and effectively. As a non-resident, the completely hands-off service provided has allowed me to enjoy a hassle-free investment with minimal time and effort required.
Select Property develops great quality products and portfolios for its clients. All invested properties are rented out at the best possible price point. The professionalism shown by the staff members to each investor is truly amazing and appreciated. I will only invest with Select Property moving forward.
FAQs
Is UK property a good investment?
Given the chronic shortfall of homes (estimated to be 340,000 in England alone), the UK’s supply and demand imbalance underpins its success as a prime investment location. The market’s long-term, credible record of resilience and stability in times of wider economic uncertainty make it a trusted choice for domestic and international investors. The outlook for UK property investment remains buoyant for 2024 and beyond, with buyer sentiment high across all prime city locations.
How property investment works
Whether you live in the property yourself or are purchasing solely for investment, your property will appreciate in value over time. Paired with rental returns, many investors choose to invest in property as it gives them a healthy balance of regular cash flow and equity in a tangible asset. Investing with a specialist who can manage your investment on your behalf is an attractive option for many, so they can enjoy a hands-off, hassle-free experience.
How to start investing in UK property
If you’re considering starting your UK property investment journey, the first step is to research the best locations, property types and developers. Choosing a credible developer with a proven track record of completed properties is a key factor in minimising risk and maximising your returns. Every investment should start with a conversation with a property consultant on your goals, preferences and budget. Learn more in our Investment Guide.
What type of property is best for investment?
While there are pros and cons of every investment, the residential property market presents a standout opportunity underpinned by a chronic supply and demand imbalance. City centre apartments offer an attractive rental yield and strong capital growth projections. Deciding on the type of property and how many bedrooms is best for investment largely depends on your preferences and goals. Read our blogfor an overview.
How are investment properties taxed?
The UK has several taxes that both resident and non-UK resident property investors should be aware of. Stamp Duty Land Tax (SDLT) is applicable for any residential property purchase in England and Northern Ireland. The tax is payable upon completion of purchase, or for off-plan property, it is payable on completion of the property. For a full breakdown of taxes, download our Guide. *This information is to be used as a guide only. Select Property is not a tax advisor. Please consult your financial advisor for further support.
How to buy UK property as an overseas investor
Living overseas shouldn’t be a barrier for investing in UK property or securing a mortgage. Many overseas investors choose UK property as a key diversification strategy. Across our global offices in Manchester, Dubai, Shanghai and Hong Kong, our dedicated teams make UK property investment as easy as possible. Read our Guide for more information.
Credible developer and investment specialist with over 20 years of experience
End-to-end investment service from consultation through to exit strategy
Market-leading yields in the UK’s prime investment cities
Global offices with multilingual teams so we can understand your bespoke needs