There’s always been a healthy level of foreign investment in UK property, and one that has allowed the market to thrive and grow over the years.
With the UK property market renowned for being a safe haven for protecting wealth and growing investments, it’s not surprising that investors from all over the world want to invest in the UK.
That interest and investment isn’t just isolated to London, it’s now expanding across the country and the likes of Manchester, Liverpool, Leeds and Newcastle, as well as Scotland and Wales, are experiencing increased demand for their high-yielding property markets.
Ultimately, the question of whether this is positive for the market overall is better directed at the supply side. Clearly, buyers and renters need and want homes, so investment into more properties and allowing more to be built should, at the very least, be considered part of the solution if not the whole.
So, where will this take the market in the coming months and years?
Foreign investment into UK property
A new study, reported by the Telegraph, suggests that foreign investors have helped to grow the UK property market by as much as 17% over the past two decades, suggesting the same could happen again or even grow further.
Foreign investment in UK property can have a number of positive impacts on the economy and the housing sector:
- Foreign investment injects capital into the housing market, stimulating economic growth and creating employment opportunities. Construction companies, real estate agents, and related industries benefit from increased investment, leading to job creation and a boost to local economies as well as, crucially, an increased housing supply.
- Foreign investors often contribute to the development of new housing projects, which helps to increase the overall housing supply. This can address housing shortages and contribute to a more balanced market, benefiting both residents and potential homebuyers.
- These investors may also invest in infrastructure projects alongside housing developments. This can lead to improved transportation networks, public amenities, and urban regeneration, enhancing the overall livability and desirability of an area.
- Finally, foreign investment in UK property can bring stability to the housing market, especially during times of economic uncertainty. By diversifying the investor base, it reduces reliance on domestic buyers and mitigates potential downturns in the market.
Investing in UK property
By and large, the UK property market has demonstrated perfectly well its durability and resilience in the face of uncertain economic conditions.
Most investors have determined that, despite uncertainty, UK buy-to-let property investment can continue to provide stable growth and a strong income along with strong yields.
Comparatively, the UK market remains not only one of the strongest in the world but also one of the best investment asset classes too.
If you’re interested in buying property in the UK then why not get in touch with us today? With almost 20 years of experience in the property investment sector, we are perfectly placed to find the right investment for you!