Have you been considering investing in the property market, but don’t know exactly where to turn your attention? It can be a difficult decision. Markets around the world fluctuate and stutter in the face of economic and political instability, and considerable price falls are expected; especially in the China, Hong Kong and Singapore property markets.
While Asia’s domestic markets continue to decline, UK real estate boasts performance levels investors are desperately seeking. February 2016 saw UK property values hit a new 10 months high, rising 4.8% since April last year. We asked the leading British property developer Select Property Group, what’s behind the British real estate boom?
Once renowned as being a nation of homeowners, fewer Britons are buying property today and are renting instead. While some harbour ambitions to own in the near future, there is an increasing number of tenants that prefer the flexibility renting provides. “Primarily this new trend is being driven by young people; tenants that belong to a generation that no longer equates home ownership with success,” says Adam Price, Managing Director at Select Property Group.
According to the latest estimation, over 50% of 20 to 39-year-olds in the UK will be renting their homes by 2025, which will set a demand for high quality, city centre properties in vibrant young communities. “This is where build-to-rent comes in,” says Adam. “Build-to-rent, real estate that is purposely built for the rental sector, is the fastest growing property sector in the UK right now.”
London at the end of its growth cycle
While London has been great for its existing investors, it’s now increasingly unaffordable for first-time buyers. Over the last two decades prices have soared, and the average asking price in the capital is around 182% higher than the average collective value of property in England and Wales.