England Property

As one of the most developed countries in the world, the UK is a recognised, stable nation in which to invest in real estate. Below are some key factors to consider when researching a property purchase in England.

Today property in England offers strong investment opportunities in carefully selected locations.

It is true that real estate prices have rocketed in England over recent years, especially in London, but for those prepared to dig a little deeper, some highly profitable property choices can still be made.

As a member of the G8, the UK is a highly industrialized economic nation with the sixth largest GDP figures in the world. This translates into a booming economic environment requiring a strong sustaining supply of residential and commercial property. Bought in areas where demand is high, English property can produce significant returns on investment, such as in London where some house prices have increased by 11.3% p.a. from 2006.

Investment growth in England is taking place at a slow but steady pace, particularly in London and the south east. Other main investment areas of England are to be found in the north east and Nottingham, Manchester and Southampton. Although visitors don’t come to England for its climate, tourists flock here for a wide variety of other reasons, including rich history, cultural heritage and beautiful greenery. A vast array of arts, sights, shopping and a truly intoxicating culture continues to make England a top destination for tourists from across the globe. Tourist hotspots in the heart of England continue to be a firm favourite for property investors wishing to profit from hotels and holiday rentals.

If you are considering purchasing a property in England, a look at our Guide to England Property will help you gather information about properties and sought-after locations in England, as well as gain in-depth knowledge of the property buying process. If your English property purchase is aimed purely as an investment vehicle, it is important that you view our England Property Investment section.

Whatever the aim of your property purchase, the boxes below will give you access to information relating to property purchase in England and allow you to assess whether this location is to satisfy your investment requirements to the full.

English Property Market Overview

Despite prices tipping the scales of affordability for many purchasers, investor demand from the UK and overseas has picked up slightly over recent months. In London roughly 70% of new home sales are made to investors, 25% of buyers being from overseas. The new homes market is performing best of all, with central locations close to good transport links attracting the highest levels of interest. Buy-to-let investing has unsurprisingly set new records to accommodate those who are, for now, still unable to take a first step onto the English property ladder.

Demand is a major cause for concern, particularly in London and, to a degree, the South West and latest government figures indicate the number of households in England is expected to increase by 223,000 per annum, without taking immigration into account. Current house construction projections show a rate of 200,000 units per annum, reflecting an ongoing shortfall to meet current demand for several years to come.

The Bank of England raised interest rates by 0.25% to 4.75% in August 2006 and this was recently increased to 5.75% in 2007. The situation is expected to dampen demand a little further, particularly amongst those seeking a mortgage to finance their purchase. As a result, price rises in 2007 could also be marginally lower, although growth is still likely to be slow but positive.

Investment Property in England

Property in certain areas of England is offering comparatively strong growth rates and, according to a report from property consultancy firm, Acadametrics, most regions of England have seen an average of up to 7.6% annual growth rate over the first six months of 2007. Meanwhile, London continues ahead with growth at 11.3% per annum. Experts have predicted however that house rates will start to slow down over the next year or so, as affordability constraints and recent increases in interest rates take hold.

Savvy investors are profiting from a slow market to supply rental accommodation for an insatiable demand in prime locations, where property prices are unattainable for many. Buy-to-let investors are enjoying record yields and in London only one third of new properties are now being bought by owner-occupiers.

Reasons why property in England is a good investment

• As long-term investments, buy-to-let purchases in England offer strong and stable investments, with a ready supply of tenants in many prime locations. Rental yields of between 3 and 5% per annum, though not the highest in the world, are offering steady income to add to capital growth upon eventual resale.
• Economically, England is a world leader and a member of the G8. It is a founding member of the UN and NATO, making England a reassuringly safe and solid country in which to buy property.
• England is the third most populated state in the European Union, indicating a high demand for all types of commercial and residential real estate.
• Green meadows, snow-capped mountains, moorlands and lakes blend with countless monuments, traditional pubs, cream teas, theatre, arts, cinema and music, attracting year-round tourists from all corners of the globe. This creates a strong opportunity for investors into tourism related real estate.
• The wide availability of mortgage, credit and loan products makes raising property finance an attainable option.
• Quality properties, from smart, trendy urban off-plan apartments, to rambling country properties to suit all budgets and tastes makes English property suited to many buyers’ needs.
• A large number of direct airline services to England’s 49 major national and international airports are available from many worldwide locations. An excellent road and transport infrastructure makes for easy access to your final destination.

International Property Investment Network (IPIN) assists investors of all levels to find the very best investment opportunities. We carefully vet all our recommended investment locations and therefore maximise our members´ chances of achieving the best return on investment from their property purchase in England.

Home buyers in England

For home buyers looking to re-locate or purchase a holiday investment, England offers a wide range of exciting and beautiful options both in urban and rural locations. Famed for its great beauty and variety, along with the unmistakable British culture and lifestyle, England has much to offer visitors and residents alike. A welcoming state, high quality of life and strong social and economic infrastructures are all major factors to draw many overseas home buyers to England today.

Those purchasing property in England are expecting a steady, successful long-term investment within a stable economic and political climate, while many focus on buy-to-let property, currently a favourite option amongst investors.

England Property Hotspots

Top real estate locations include the capital city of London, where growth is currently at its highest, Manchester, Southampton and cities such as Nottingham and the north east region of England. Figures released by the Office for National Statistics in August 2007 revel that in the past years, the fastest-growing populations were to be found in the East Midlands and east of England, including London, Hertfordshire, Essex and the Norfolk Broads. This growth has been reflected in property prices, eg. in Retford, Nottinghamshire, prices have grown by 28% p.a., a growth rate normally associated with prime locations in London.