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first time property investor

Are you a first time property investor purchasing your first investment property? The entire property investment process can be rather daunting at times, especially for newcomers, so we have created this guide to walk you through the key steps and decisions when it comes to purchasing your first investment property.

For the longest time, UK property has been an excellent investment class that has continued to go from strength to strength, year after year. Continued house price growth, rents increasing across the country and an ever-buoyant market in the last few years all showcase the potential of property and have resulted in an influx of those looking to take their first step into property investment. So, what do you need to consider as a first time property investor?


First things first, you need to set a budget for your investment. Take a look at your personal finances and determine how much money you can afford and want to spend on your first investment property. The budget you set will massively impact both the type of property and the locations in which you can invest. One of the key factors is deciding on whether you purchase with cash or if you need finance, this will also determine what company you can purchase from and the type of property.


Whilst choosing what location you want to invest in can be one of the more exciting aspects of the property investment process, when it comes to buy-to-let it isn’t the be all or end all. The main thing to consider when it comes to investing is the tenant demand in the area and the rental yields, so instead of setting your heart on a specific location we would recommend getting in touch with a property consultant and asking them to find you a property that meets your investment goals as opposed to in a specific location. 

Property type

In addition to deciding on the location, a key feature you will need to make a decision on is the type of property to invest in. Do you want to invest in a 3-bedroom house, student accommodation or a 2-bedroom apartment with a balcony for example? Apartments are usually much more sought after when looking towards a city centre, whereas houses are more favoured in suburban areas, and student housing is extremely popular when in close proximity to popular universities. 

Off-plan or completed?

When it comes to property investment, many immediately think of investing in a completed apartment. However, off-plan investment continues to be one of the most popular asset classes in the UK. Off-plan investment refers to the purchase of an apartment or house prior to its practical completion. It is usually cheaper than completed properties, and also offers the appeal of a brand-new apartment when advertising your property on the rental market upon completion.

Potential returns

Once you have decided where to invest, the type of property, and whether or not you want to invest in a completed or off-plan property, the next step is to determine how much you will need to make from the investment in order to make it profitable. It’s important to keep in mind that there are more than just the initial costs to consider for an investment property, such as maintenance costs, management fees and what you will do if you enter a void period. 

Tenant demand

It’s important to look into tenant demand for the type of property and location you’re investing in, to determine how much you can make. Compare similar types of properties in the area and see what they are rented out for to give yourself a good idea of the price you can charge. Also keep an eye on how quickly these properties are removed from the market thanks to a let being agreed, in order to gauge an idea of the demand for similar properties.  

First time property investor process

Here at Knight Knox, we make investing in property simple. Our investment process can be broken down into 5 simple steps:

Step one: Discuss your requirements with your property consultant.

The first step in investing in anything is deciding what your priorities and requirements are. Get in touch with us today and one of our dedicated property consultants will discuss all of your requirements to get an idea of which investment is best for you.

Step two: Your consultant will assist you in finding the perfect investment opportunity.

After talking through your requirements, it’s time for you to pick your perfect property. From choosing your preferred location and size to choosing the orientation – there are a plethora of decisions to be made and we will be happy to help you through them all.

Step three: Pay a reservation deposit to secure your apartment.

After finding you your perfect property, you will be expected to pay a deposit to reserve it and take it off the market. At Knight Knox we require a reservation fee of £5,000.

Step four: Notify your dedicated aftersales consultant of your chosen solicitor.

You must appoint a solicitor to carry out legal work on your behalf. If you are unsure of which firm to use, Knight Knox has a panel of recommended firms who are well versed in the intricacies of buy-to-let property investment. Once you have decided on which solicitor to use, they will require you to sign an instruction letter to confirm appointment.

Step five: Exchange of contracts will be required within 21 days of reservation.

UK property statistics



Annual house price growth in the UK has hit over 10% for the last two years in the UK (ONS, 2022)


UK rents rose by 1.8% in the 12 months to December 2021 (ONS, 2022)


House prices in the UK are forecast to increase by an impressive 21.7% in the 2022-2026 period. (JLL, 2021)


Rental values in the UK are forecast to increase by an impressive 12.6% in the 2022-2026 period. (JLL, 2021)

Download our first-time property investor guide today!

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