Why Invest In UK? Attractive Rental Yields

The Current Property Market Environment: Attractive Rental Yields

We've mentioned this before, but it's really important to understand the environment that we're currently in. And that environment, is this:

Strong Demand for Property Leads to Attractive Rental Yields

There's a strong demand for property, and part of this demand may drop as we go through the recession or downturn, whatever you want to call it. However, if we look at the supply side, we've had some significant issues:

• Brexit
• COVID
• Planning issues (NIMBY - "Not In My Backyard")

The impact of NIMBY is on various areas saying, "We don't want more development," which means that the supply starts to drop off.

Impact on Attractive Rental Yields

All these factors have affected the supply, which means:

• Properties are in high demand
• Attractive rental yields have shot up (in some cases, 30-40% rises)

There's so much demand for property in those areas. Unfortunately, it's also a double-edged sword because many people can't afford to stay in their own property, and they're having to share.

Dysfunctional Market and Attractive Rental Yields

Right now, the market is a bit dysfunctional due to:

1. Planning difficulties
2. Cost of living crisis (building new properties is more expensive)

Until capital values increase, it's very hard to build or take on a new development site because of the risks involved. Even though demand is subdued, supply is also subdued.

Potential for Price Growth and Attractive Rental Yields

As soon as the supply-demand side increases, it takes a long time (2-5 years) for the supply to come back online. This means that at the end of this recession, we could potentially see prices grow. This is one of the attractive things about rental yields right now, and why it's a great time to get in.

Types of Properties with Attractive Rental Yields

There are different types of properties to consider:

• HMOs (Houses in Multiple Occupation)
• High-yielding properties (e.g., serviced apartments, care homes, student accommodation)
• Capital growth properties

HMOs and high-yielding properties often offer more attractive rental yields than standard buy-to-let investments, but they come with additional considerations:

• Higher property management fees
• Potential difficulty in changing managers
• Importance of having a good manager

The UK has fantastic and attractive rental yields, and it's an attractive time to invest in property. However, it's important to weigh your strategy against your long-term goals and consider the potential challenges of different property types to maximise your attractive rental yields.

So whatever your needs, we’ve got the qualifications, experience, systems, relationships, and history that you need for an effortless experience. We're perfectly suited to investors looking to invest in UK property.

Chat with the team about how you can get started with or expand your existing UK portfolio.

Live with passion,
Brett