Experience Invest Blog: UK residential property represents significant investor potential

UK residential property represents significant investor potential

Posted Posted in Real Estate

  In the latest Experience Invest blog post, we report on the news that new figures have highlighted a considerable uptick in the value of the UK’s housing stock during recent months and years, showcasing the considerable scope for investor gains that the country continues to provide. Data analysed by UK estate agent Savills and reported by the Financial Times has revealed the overall value of UK housing has risen by more than one-third during the last decade, and now stands in excess of £7.14 trillion. Last year was the first time since records began that total housing value in the UK breached the £7 trillion mark. It also means that, for the first time ever, the combined value of property within the nation’s residential housing sector is now ten times that of the government’s total income. These are certainly some impressive statistics and highlight the fact that significant gains continue to be witnessed for investors in UK residential property. Across the nation, Savills’ data showed that London has led the way in terms of major value increases during recent years, but that said, significant rises have been witnessed in other areas of the UK, most notably in the north-west of England, Scotland and both the West and East Midlands. Despite a slow start to the last ten years – as the impact of the global economic downturn saw UK housing values fall between 2008 and 2012 – from 2013 onwards the UK has registered six consecutive years of strong value growth, with 80 per cent of the total value increase coming from existing housing stock. Furthermore, Savills predicts this is a trend that is unlikely to end anytime soon. A combination of factors, including ongoing constraint in the supply of new homes in many parts of the country and […]

Government housing market white paper

Will more sheltered housing be needed as the government incentivises downsizing?

Posted Posted in Real Estate

A new government housing market white paper has announced that it will be looking to offer incentives to older people that would encourage them to move out of their family homes and into smaller accommodation in order to create a more fluid market, but could this create a new opportunity for investors? There has long been a trend in the UK of older people remaining in homes that are far too big for them, long after their families have grown up and flown the nest. This creates bottlenecks in the market where there is a lack of properties for people looking to move up the ladder to buy. Government housing market white paper The government has revealed that it will be looking to address this historic issue in its new housing white paper, read more here. Housing minister Gavin Barwell refused to give any in-depth details about what the incentives would mean for older residents, but he did tell ITV that the bringing back to market of an increased number of family homes is a major focus for the government moving forward. “We’ve got a lot of demographic change in the country and an increasing elderly population, so it’s not just about how many houses you build, but are you building the right kind of houses? If we can make it easier for elderly people to move it releases family homes that we’re desperate for. It’s a really interesting idea,” said Mr Barwell. One problem that will need to be addressed is just how the government plans to make its dream a reality. It’s expected that older people will be encouraged to move into retirement communities and sheltered housing as part of the move, but there are problems with severe shortages. Despite the aging population in the UK and the […]

Experience Invest: Dubai Real Estate Market

Experts Believe Dubai Real Estate Market is Maturing

Posted Posted in Dubai, Experience Invest, Real Estate

Hello, and welcome back to the Experience Invest blog, a chance for you to catch up on domestic and international residential investment news stories. Today we’re exploring the real estate market in Dubai, which according to recent research is maturing. Property values in Dubai have been plagued by a cycle of boom and bust in recent years. Prices halved between 2008 and 2010, but by 2014 they had risen sharply again. The latest price increase encouraged the authorities to put regulations in place to reduce future speculation. These regulations included capping mortgages and increasing transaction fees, which combined with other factors such as deteriorating oil prices, currency fluctuations, and an excess of new build supply in the region, resulted in a dip in the demand for properties in Dubai. The net impact, according to the research, is a 12% fall in mainstream property prices over the last year to June 2015. Lessons learnt from the downturn Knight Frank, international real estate firm and author of the research believes the falling prices are not necessarily bad news. In their report they say: “With the government stepping in to curb speculative activity through tightening mortgage regulations and capping price increments, it is evident that lessons have been learnt from the 2008 downturn and the market is heading steadily to be more mature and better controlled. “More interestingly, with price falls continuing to outpace rental value declines, initial yields are rising. Reaching more than 7% in rental yields in the mainstream property segment, Dubai still stands tall among real estate capitals in the world for investor seeking income generating properties.” So what does this mean for the property market in the Middle East? Despite the rise of alternative regional markets for international buyers, Knight Frank believes Dubai and Abu Dhabi will remain strong. […]