As we look at UK Property Investment 2024, investors are keeping a close eye on the UK property market. Despite shifts in the global economy and internal market dynamics, the question arises: is UK property still a good investment in 2024? With indicators pointing to a sustainable appreciation in property values and promising regional market strengths, this article looks at why UK property is still a good investment in 2024 and beyond.
The UK property market is set to defy expectations with a predicted 3% rise in UK property prices in 2024, overcoming previous predictions of a decline. This resurgence is powered by a blend of economic growth, wage trends, and reduced unemployment, instilling investor confidence and fostering an optimistic market forecast for UK property in 2024.
London’s mainstream market, buoyed by more affordable areas, is expected to grow by 2% in 2024, while prime country house markets are forecasted to see only a 2% drop as the market stabilises. The political landscape, including election outcomes and potential pre-electoral fiscal measures, alongside a faster-than-expected fall in inflation, significantly influences this market positivity.
Rental market trends are equally encouraging, with the average UK rental increase at 11.1% and London experiencing a sharper rise of 15.2%. Cities like Manchester, Birmingham, and Bristol are forecasted to see rental growth exceeding 18% from 2023 to 2027, driven by regeneration and increasing job opportunities.
Investors eyeing the UK property market in 2024 should turn their attention towards the Midlands and the North West of England. These regions demonstrate promising growth prospects. Cities undergoing substantial regeneration and those becoming educational and technological hubs are advised as high-potential investment areas for investment in 2024. Some cities to consider include:
With tenant demand consistently outstripping supply, the UK’s Private Rented Sector remains a strong investment avenue. The sector, currently valued at over £1 trillion, is expected to expand further, potentially leading to tenants outnumbering homeowners by 2039. Birmingham, as one of the UK’s most populous cities, is expected to see its population reach 1.24 million by 2030, further exacerbating the supply-demand imbalance and bolstering the case for property investment in the region.
With population growth and urbanisation contributing to a substantial increase in demand for rental properties in the UK, the property market is experiencing a significant surge. The rental market includes 1.18 million individuals between the ages of 45-50, indicating a diverse tenant demographic. Rental value growth in the UK is expected to moderate at around 5% in 2024, with London projecting a slightly higher growth rate of 6%.
Some key benefits of investing in rental properties include:
Current averages show UK rents at around £1,270, up 7.5% from the previous year, with buy-to-let properties in Liverpool and Manchester offering gross rental yields of up to 8%. In the context of average property prices, this data highlights the potential for strong returns on investment in these areas.
Adopting the right expectations and strategies can ensure that buy-to-let properties continue to yield lucrative long-term returns.
Investing in the UK property market is made more accessible with Prosperity Wealth’s market-leading approach. Our unique monthly property payment plan eases the process for investors to enter the market. Catering to a diverse range from first-time buyers, and experienced homeowners, to investors expanding their portfolios, our investment opportunities are designed to be highly accessible.
At our core, Prosperity Wealth is dedicated to making property investment more attainable for buyers both here in the UK and for those overseas. Investing with us in the UK market not only simplifies the investment process but also opens the door to a broader range of individuals seeking to own & invest in property.
The monthly payment plan by Prosperity Wealth involves a 5% deposit upon reservation, followed by the remaining 25% divided into affordable monthly payments during the construction phase, spanning approximately two years.
This innovative investment approach, by breaking down the deposit into monthly instalments, makes property investment more accessible and the financial commitment more manageable for a broader range of investors.
Prosperity Wealth is a leading national property developer committed to delivering high-quality homes across the UK. We pride ourselves on designing residential properties that not only meet but exceed the expectations of quality.
Beyond construction, we emphasise the importance of ensuring each home provides a fulfilling living experience, with a commitment to not just the physical structure but also the well-being of its inhabitants.
The UK housing market has historically shown resilience, with property prices continuing to rise despite economic challenges. This resilience is also evident from its steady recovery post-economic fluctuations. During the COVID-19 pandemic, UK house prices initially dipped by only -1.02% and then experienced a significant upswing, growing by around £37,000 since the start of the pandemic, which impacted the average house price.
Despite these trends, according to Rightmove the average house prices for new listings on the market has increased by 1.5% (+£5,279) in March 2024, reaching £368,118. This uptick surpasses the usual March increase of 1.0% and marks the most significant rise in almost a year, signalling a continued recovery from a subdued 2023.
The UK property market is recognised for its long-term stability. Historically, the UK housing market has shown resilience during economic downturns. Despite global financial crises, the UK housing market remained relatively stable.
This past performance provides a solid foundation for future investment confidence.
Before investing in the UK housing market in 2024, investors should carefully weigh risks and rewards based on their financial situation and investment timeline, and, ideally, consult a property investment expert such as Prosperity Wealth for tailored advice. Even with the short-term unpredictability in house prices, investing smartly can lead to profitability in 2024 & beyond.
Success in buy-to-let investments in 2024 can be maximised by:
Investing in UK property in 2024 requires thorough scrutiny of economic signals, demographic shifts, and forthcoming advancements in regions of interest. When evaluating UK property investment opportunities in 2024, investors should compare sales and rental estimates to local market achievements using market portals.
Investors should analyse properties within a 0.5-mile radius of the target investment, considering factors such as property quality, year built, and general condition. Legal due diligence for property investments involves title deed searches, water and contaminated land searches, and local area searches to identify potential constraints and risks.
Targeting high-demand areas that have not yet reached their value peak can be a strategic choice for capital growth. Expected rental value growth is stronger in lower-value markets, indicating a higher demand potential.
While prime central London expects a significant rental value increase, it is anticipated to underperform relative to the wider UK property market. Landlords might face a situation where raising rent is the primary option to handle increased costs, impacting demand dynamics.
By leveraging the 35% deposit built up through Prosperity Wealth’s payment plan, investors can secure buy-to-let mortgages with favourable options to minimise borrowing costs. Managing mortgage payments through buy-to-let mortgages allows for spreading the cost over time, contributing to cost efficiency.
When investing you should aim for a reasonable down payment and loan-to-value ratio to stay protected against the implications of declining housing prices. Discussions with lenders about mitigating risks like negative equity can help give you confidence before investing.
In 2024, the UK property market offers a robust landscape for investments, promising growth and resilience amid economic turbulence. By diversifying property investments, conducting thorough research, focusing on high-demand areas, and leveraging Prosperity Wealth’s unique monthly payment plan and high-quality homes, investors can navigate the UK property market with confidence and success.
Get in touch with us and we can discuss any concerns you may have with investing currently, our friendly team will be able to talk you through the options available to you and answer any questions.
You can contact us by phone on +44 (0) 121 237 4610, via info@prosperity-wealth.co.uk or by using our online chat!
Some forecasts indicate a 3% increase in mainstream prices for the UK property market in 2024, surpassing earlier expectations of a decrease.
Investing with Prosperity Wealth offers a unique monthly property payment plan and high-quality homes, making property investment more accessible for a diverse range of investors.
To diversify your property investments, consider spreading your assets across different property types & locations.
Prosperity Wealth’s payment plan enables you to gradually build a 30% deposit through monthly instalments, making property investment more achievable for you.
