Homeowners Confident in UK Property Investment Prospects

Rental owners who are considering the future of their real estate investment portfolio are optimistic that the next 12 months will be worth the investment.

New research has found that more than a third (34%) of homeowners plan to buy at least one more property in the coming year. Two thirds (67%) more say they are confident in the UK property investment market over the next 12 months.

The Shawbrook Bank report, which used a combination of ONS research and Department of Housing data, as well as an Opinium study, also found that apartments remain a popular option for homeowners. This matches recent reports that house price increases have been most marked in apartments and city centers in recent months.

Emma Cox, Sales Director at Shawbrook Bank, comments: “The resilience of the UK property market is clear from our research. Despite the hurdles caused by the pandemic, the market has remained firm and house prices have continued to soar. This has created exciting opportunities for investors and real estate developers, whose confidence in the market has increased over the past 12 months. Their activity and buying trends show that the market is expected to remain strong in the near term. “

Getting off the beaten track: a new place?

Interestingly, research has also shown that homeowners are diversifying from their proven real estate investment locations. More than one in 10 (13%) said they plan to shop in a new location, and 36% of them are focused in urban areas.

The north of England, which is consistently touted as having the best prospects for buying and renting, is particularly popular among homeowners surveyed. Almost a quarter (23%) plan to seek new investment somewhere in the north.

In terms of property types, around 12% of homeowners also said they would consider other options in the new year than the ones they have already invested in. Of these, 34% will target semi-detached houses, 31% plan to buy terraces and 27% are looking for apartments.

Location and type of property are two key areas that homeowners can research and use to their advantage when considering their next real estate investment. These two factors can have a major influence on the current rental yields as well as the prospects for capital appreciation.

Looking for new real estate investment opportunities

With confidence remaining high among property owners and investors, it looks like the appetite in the housing market will remain robust through 2022.

Emma Cox comments: “Indeed, with 2021 heralded as the ‘busiest year’ for the housing market according to Zoopla, despite recent declines in transactions, it is clear that the market has fully rebounded from the lows of the pandemic. .

“As supply continues to be low, real estate price growth is unlikely to slow significantly and as we move into January next year after the seasonal Christmas downturn, investors real estate companies will look for other opportunities to expand their portfolios. “

BuyAssociation offers a range of real estate investment opportunities available across the UK, many of which are concentrated in the north of England. Contact us for more information.