Investment Growth In England

When considering a property investment in England, it is essential to have an understanding of the economic factors and statistics that are behind today’s growth figures.

England Investment Growth

Investment property in England at carefully selected locations offers reliable capital growth, particularly in the hotspots of north eastern England and Nottingham, Manchester and Southampton, as well as in the capital city of London where some house prices have been seeing increases of an average 11.3% p.a.

Other areas of the country have averaged up to 7.6% annual growth rate in the first six months of 2007. August 2007 figures from The Office for National Statistics reveal that in the past years, the fastest-growing populations in England were to be found in the East Midlands, including London, Hertfordshire, Essex and Norfolk. This growth is clear from property price increases that have even reached 28% p.a. in areas such as Retford, Nottinghamshire; a rate normally only seen in prime London locations.

Growth is highest in the commercial investment property market and central London is the best performer with office returns on investment reaching 17.1% p.a. in 2007.

Retail property has fallen back with 7.9% p.a, and industrial properties have recorded a return of 10.6% in the year to July. Looking ahead experts predict total returns in the calendar year 2007 to be around 9-10%, with offices outperforming all sectors at around 14.3% p.a.

According to The Royal Institution of Chartered Surveyors (Rics), the English buy-to-let sector in general is seeing rents rise at a record pace with no signs of abating. Temporary economic uncertainty and increased bank interest rates to 5.7% have naturally created an ideal platform for buy-to-let investors to cash in on rising demand for rental property and increases in this sector have been recorded at 3.8% in the year to July 2007. As rental income is usually subject to long term leases, investors also enjoy a good level of guarantee. However it must be remembered that due to the current high cost of buy-to-let mortgages, rental yields are often negligible, if not unobtainable, while long term growth is the main aim of rental investors today.

England Economy

The UK economy remains on course to achieve a predicted 2.8% growth this year and is generally regarded as a strong and reliable economy in which to invest. A highly industrialized economic nation with the sixth largest GDP in the world, England is a booming economic global player. However, the volatility of the Stock Market in recent weeks and the uncertainty surrounding the financial markets could potentially have an impact on growth if the situation persists.

Reasons why England is an Intelligent Property Investment Location

• Buy-to-let purchases in England offer particularly strong and stable medium to long-term investments as there is a ready supply of tenants in many prime locations. In some instances, rental yields of between 3 and 5% per annum are achievable and, though not the highest in the world, are offering steady income to add to capital growth upon eventual resale.
• England is an economic world leader and a member of the G8. As a founding member of the UN and NATO, England is a reassuringly safe and solid country in which to purchase 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 perfectly attainable.
• 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.

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