The win for the Conservatives in the UK’s recent General Election has allowed investors in UK property to breathe a sigh of relief. On our last trip to the Far East in April, investors were understandably concerned about the outcome of the election and some were holding back on expanding their London property portfolios. Now, with the election behind us and a Conservative government back in power, our upcoming property seminars in Hong Kong, Malaysia and Singapore will look at what lies ahead for the UK property market.
What is the outlook for London property now that the General Election is over?
Will a new government mean a new approach?
Where and when should you invest in London?
Which recent tax developments will affect international investors?
Why London is still a good investment
The fundamental reasons for investing in London property – good rental demand, strong capital growth and a stable political and economic environment, remain constant.
The UK has long been a safe haven for investors, with its stable political environment and fair and transparent tax regime. Demand for London homes is high and the capital is experiencing unprecedented rental demand, with its population expected to grow from its current 8.6m to 10m by 2021.
According to RICS (Royal Institute of Chartered Surveyors) around 40% of London households are rented and it predicts that figure will grow to 50% by 2025. And while many new residential developments are being constructed, this long-term growth in population means that still too few homes are being built.
Demand for London homes continues to outstrip supply
According to the National Housing Federation, only a third of the new homes needed in London were built in 2014. It states that 18,750 homes were built in 2014 yet 56,400 new properties were needed to keep up with demand – a shortfall of 37,650 homes. So with continuing property shortages and demand growing, London property remains an attractive investment. In fact, London property achieved capital returns of 15% to 85% over the last five years depending on location and good rental yields with RICS reporting that average rents increased by 5.6% in 2014.
Property investment strategy
The most important question is where should you buy a rental property? The key to achieving a good rental yield is to pick a location where property is still undervalued and where sales prices are lower, yet where there is good tenant demand. There are fewer opportunities like this available and usually the best rental yields can be found on the fringes of central London – so a more strategic approach is required today than has been the case over the last few years.
Independently owned lettings agency since 1956
There will be lots to discuss when we visit the Far East this July. With over 50 years’ London property experience, Benham and Reeves Estate Agents has experience of most types of economic situation and this is no different. With demand for rental properties at a high, we’re continuing to expand, with the opening of four new offices – in Hammersmith, Wapping, Kew Bridge and Surrey Quays, making us independently owned lettings agency since 1956. And we’ll be offering real insights into the current London property and rentals market this July so be sure to make a date in your diary for our seminars or private consultations.
South East Asia directors’ trip: dates for your diary
We’ll be in Hong Kong, Singapore and Malaysia on the following dates:
Seminars: Saturday 18th July, 12pm and 2pm.
Private meetings: Friday 17th July to Monday 20th July.
Seminars: Saturday 25th July, 1pm and 4pm.
Private meetings: Thursday 23rd to Sunday 26th July.
Seminar: Saturday 1st August, 2.30pm.
Private meetings: Friday 31st July.
Please click here if you would like to attend a private appointment or one of our free seminars. Alternatively feel free to contact your nearest international branch.
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