As we mentioned in the initial guide General Guide To Investing in UK Property, one of the first considerations for anyone considering investing in property is to ensure you understand your true reasons for making your investment. Only then will you be able to fully and unequivocally carry out the research needed to enable you to make the right decisions.

Common reasons for investing in property

  • Property renovation– The aim here is generally to buy renovate and sell in as short a time as possible and then repeat the exercise to build your capital.
  • Building a property investment business – Investing in multiple properties and creating a portfolio of rental properties which could include a mixture of properties for renovation for later sale or rent would be the main aim.
  • Buying investment property to provide support in retirement – People approaching retirement may consider investing their spare capital in rented property to provide income and retain value for inheritance purposes.
  • Investing in a holiday home property – This is not normally about wealth creation but more to do with personal lifestyle values. However these properties are nevertheless investments and purchasing one should involve utilising the same fundamental procedures as you would for other investment property.
  • Providing for children going to university – Parents often need to consider purchasing in cities away from the family home as a way of providing secure accommodation for the student throughout the term they are at the university. Often the student will share with friends who will contribute rent to help with the costs. On graduation these properties would normally be sold.
  • Purchasing a future retirement property – Sometimes people who are looking towards retiring may want to settle in a different area such as beside the sea but by the time they are ready make this move, costs can have spiralled. One solution is that while still in middle age a suitable property can be purchased and rented rented out until it is needed so ensuring that a secure retirement home will always be available.
  • Buying property for future residency – Where people have been working away from their home town but intend to return at some point, purchasing their ideal property and renting out while they are living away would allow them finance the property in the meantime and provide the security of knowing they can return to live in the property they want at some point in the future.
  • People with high income entering the buy-to-let (BTL) market – The UK produces large numbers of high earners who want to put their spare cash into some form of investment. UK property has traditionally been seen as an ideal place for this money and investing in buy-to-let property is often viewed as the way to do this. As they are generally very busy people they tend to turn to letting agents to handle the day to day running of their portfolios.

A look at the UK property market in 2017

Here is an extract from some recent reports taken at the end of 2017 which give a little insight to how the UK property market moved during that year in some UK cities.

  • Cheltenham – house prices in Cheltenham grew at the fastest pace which saw this Gloucestershire town experiencing price rises of up to 13% in the year taking the average house price to around £313,150.
  • Perth – Perth in Scotland experienced the biggest fall in prices. This was reported at –5.3% bringing the average house price in that city to around £180,687.
  • London and the south east – Most of the biggest gains were in London and southern England.
  • Yorkshire and Humberside – These areas recorded the biggest falls within England.
  • Bournemouth and Brighton – Bournemouth recorded the second biggest rise with prices climbing by up to 11.7%, while Brighton came in at number three with up to an 11.4% increase.
  • Average UK house price growth – The average increase in house prices across the UK was 2.7% according to the Halifax which based the figures on its own mortgage data.

Information buy one major lender indicated that a number of towns and cities have recorded significant rises in house prices over that year, with all of the top 20 performers recording growth of at least double the national average.

Unlike 2016 the top performers are not exclusive to London and the South East with the top spot now belonging to Cheltenham in the south west and towns in east Anglia, east Midlands, the north west, Wales and Yorkshire and the Humber also making the list.