UK named among top global locations for property investment

UK named among top global locations for property investment

Strong economic growth and significant undersupplies of new housing stock makes Britain one of the best places for high property returns.

Summary:

  • The UK has been named by Savills as the fourth best place in the world to invest in residential property
  • Britain’s well documented housing shortage, coupled with strong economic growth, means that the country sits just behind the USA, UAE and Singapore when it comes to making returns on property investment
  • Investors have long been attracted by the UK property market’s stability, diversity and track record of growing returns

The UK is currently among the world’s hotspots for residential property investment.

Thanks to record low levels of new housing stock and strong economic growth, Britain is currently the fourth best place in the world to make a return on rents and increasing property values, according to new research from Savills.

The results used economic performance and growth prospects alongside population growth to calculate the strength of a property investment against a backdrop of low supply and a sustained demand for rental accommodation.

Property prices in the UK have increased by 20% in recent years, while the growing preference among Britons to rent property means that, by 2025, it is forecast more people will be renting property in the UK than owning it.

Yolande Barners, Director of Savills World Research, said: “When a growing population, growing affluence and limited housing or land supply converge, we would anticipate real house price growth.”

The UK has long been a popular destination for overseas investors, enamoured by returns in a strong currency, political and economic stability, and a diverse product range. Its appeal has been particularly profound in recent weeks, with the equities crisis in China following Black Monday and currencies such as the South African rand falling to record lows against the British pound, highlighting the attractiveness of a British real estate asset.

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