Investing in Property in the UK
Property has always been the preferred method of acquiring and growing wealth in the UK. It is said that most of the city of London is owned by one family and they are understandably one of the wealthiest families in the country.
There are different areas of property which estate agents and investors tend to specialise in.
1. Residential Properties
First, there are residential properties. These include single houses or flats solely for residential use. Properties rented out for residence are also regarded as residential properties.
2. Commercial Properties
Second, there are commercial properties which range from shops to industrial complexes. In between, you find factories, churches, and offices. Commercial properties can be found on high streets where there are shop parades or large areas designated as industrial parks.
There is also the opportunity to buy land and develop it into either residential or commercial property. Bare land is not easily available as most of the areas are fully developed. Because the UK is subject to rigorous planning laws, most of the undeveloped land is left bare on purpose. They are categorised as greenfield or brownfield land.
A. Greenfield Land
Greenfield land is used either for agriculture or left to evolve naturally.
B. Brownfield Land
Brownfield sites have been previously developed and are more likely to be brought back to use with planning permission. Land without planning permission is usually much cheaper because of the risk that you may not get planning permission to develop or if you do, your projects would be modified by the Local Authority.
Generally all types of property increase in value over time. Properties generally produce two forms of income:
- A Rental Income (if the property is bought for investment and not just private use)
- Capital Growth of the value of the property.
It is agreed that property prices double every 7 – 10 years although there are periods when values go down or are flat for periods of time.
UK properties are relatively easy to liquidate. They are not as easily monetised as stocks, but the market is very advanced and millions of properties are bought and sold each year. Property is very much treated as an investment asset.
A property search can be time-consuming but a viewing of the property cannot be overemphasized. Mistakes in the choice of property can be very costly. There is competition for the more desirable properties. In the face of this sophisticated market where changes are introduced regularly, it is important to get specialist help to get the best out of your investment.
The Vanised team has a wealth of experience over the years advising clients in the residential and commercial sectors of the UK.