Investing in the UK’s Real Estate
The UK’s real estate market is showing positive signs thanks to the UK government taking the necessary steps to shut down certain sections of the market all the while ensuring that the housing market was given a proper restart.
So, what are the factors that are proving to be positive for a real estate investor or for an individual who wants to buy a home in the UK right now?
Property prices are predicted to grow
As per the predictions from respected real estate agencies in the UK, the prices for homes in the UK are set to rise by more than 15 percent by 2024. Therefore, this is the best time to buy a home or invest in a rental property in promising regions in the UK.
Rents are set to increase
Since the prices of properties are set to rise, it is also clear that the rent for properties will also increase. Sought after areas in the UK that tenants prefer such as should witness an increase in rent from rental property owners within the 11.5% to 12.5% range by 2023.
This is great news for people who want to own a property that they can put up for rent in a bid to have some cash flowing from the sides as rental income.
Interest rates are low
The lenders of the UK had made two consecutive cuts in the interest rates on mortgage way back in March 2020. For instance, the base interest rate offered by the Bank of England remains at 0.1% – which is historic.
The reason for this generous step from lenders is simple – they are offering competitive interest rates on their mortgage schemes along with an abundance of other similar products in a bid to attract new clients who have had plans to purchase a home.