Global investors are constantly seeking stable, long-term investments that will provide them with strong returns for their capital. For decades, the UK has provided a secure option, with international investors frequently looking to the UK as a strong asset choice that can even be passed down through generations. The UK property market is widely considered a safe haven, providing political and economic stability, a respected legal framework and incredible growth opportunities. Read on to discover the key factors contributing to the major increase in international investors, particularly Middle Eastern and Asian investors, in UK property.
A stable market
The UK property market is one of the oldest and well established markets in the world. Property has seen consistent growth, with UK house prices rising by an average 95% in the past 20 years alone. No other investment asset can provide such a stable history, with other investments such as stocks and bonds proving historically more volatile.
In addition to proven house growth, the UK also has a stable political and financial system. The British Pound Sterling (GBP) is one of the most traded currencies globally, and is consistently listed as one of the strongest currencies in the world. A symbol of reliability and confidence, the British Pound attracts a multitude of international investors.
The UK’s political system is characterised by a stable parliamentary democracy, that provides a predictable and secure environment for UK property investors. Transparency is ensured for global investors through the robust legal system that also protects property rights, creating a level of security rarely found elsewhere. The consistently reliable political and economical landscape therefore encourages a high level of confidence, establishing the UK as a compelling destination for property investment.
Securing UK property with a mortgage
Global investors can also benefit from a mortgage, a long term loan that supports property purchases. Mortgage terms usually last from 15-35 years, with various terms and types of mortgages available. You can read more about mortgages in our mortgage guide HERE.
Both domestic and international buyers can purchase UK property using a mortgage, with global investors equally covered. Providing a secure path, overseas investors can easily access a mortgage, with the process highly similar to a UK buyer. The first mortgage in England dates back to the 12th century, and mortgages are a trusted loan used by thousands of people each year to secure property. This has increased the number of international investors purchasing property in the UK, as it has made the process more accessible. Property in the UK has long been the go-to investment, and is well established as a trusted asset that will deliver strong results.
World-class education and careers
The UK’s globally renowned education system attracts over 700,000 international students to the country to study each year. Top university cities, such as Manchester and Birmingham, boast high ranking Russell Group universities, including the University of Manchester and the University of Birmingham. With both cities also retaining a staggering 50% of their graduates, this contributes to the city’s thriving job market, and abundance of career opportunities.
Due to Manchester and Birmingham’s population consisting of a highly talented pool of young professionals, major global employers have chosen to relocate to these cities, opening large office bases, including EY, PwC, Puma, Nike, Goldman Sachs, Deloitte and Google to name just a few. With significant career opportunities, these cities have also seen a large increase in demand for city centre living, supply cannot keep up. In the past five years alone, Manchester’s rents have soared by 46%, and both Birmingham and Manchester are forecast to see an additional 18% increase in rents over the next five years (JLL).
With such a strong rental demand, this is attracting more international investors to UK property, as these cities offer incredibly lucrative returns and strong yields.
Cities to future proof your investment portfolio
Manchester has been long established as a top investment city, with its major growth successfully expanding the city’s identity into a vibrant destination brimming with culture. Thanks to its incredible football, music and dining scene, Manchester is placed on a global stage, attracting significant attention from international investors. Manchester presents a compelling market for UK property investors, with consistently strong rental yields and a growing population of high earning residents. Birmingham, located in the Midlands, is following a similar journey.
Birmingham has recently received major investments, with regeneration projects worth £19 billion taking place across the city. Schemes such as Paradise Birmingham, HS2 and the Smithfield Regeneration signal commitment to future growth, which appeals to international investors seeking stability. These major regeneration projects are not only transforming the city on a surface level, but they are also creating a robust system for a job market to thrive and capital appreciation to grow. For international investors, this provides confidence that their assets are not only secure, but are invested in a city with a clear and supported path for long-term prosperity.
A trusted partner for international investors
With global offices in Manchester, Dubai, Shanghai and Hong Kong, Select Property offers dedicated support to an international investor community. We have a range of UK property investment opportunities, in the UK’s top cities, offering stable assets with strong returns. With over 21 years experience, our team is a trusted and reliable partner for overseas investors seeking to invest in UK property.
We also provide an in-house property management company, Select Residential, in which our team expertly manages all aspects of the investment. From tenant enquiries, maintenance and exit strategy, Select Property can assist with all aspects of the investment journey, which is particularly beneficial for international investors based overseas. Contact us to learn more about investing in UK property with a trusted partner.