How UK property compares internationally

How UK property compares internationally

How UK property compares to other countries around the world is something of a hot topic as of late.

As global property prices continue to grow, and property values continue to increase, the question many domestic and international investors are asking is – where is the best place to invest right now?

It has to be said that the UK property market has been, and remains, one of the premier property markets anywhere in the world for security and return on investment.

There are certainly other areas that are increasing in popularity. For example, Croatia, Germany, Spain and areas across Eastern Europe are increasing in demand quickly as populations continue to cross borders, and countries in the EU that were once fairly low in terms of relative wealth continue to advance their economies.

The UK buy to let market went through another bumper year in 2021, and now that the final pandemic era restrictions have been lifted, demand for privately rented property is soaring, and the basic fact is that there simply isn’t the stock to satisfy it.

Having said that, are there potentially areas around the world right now that are seeing unsustainable growth?

In a piece for Money Week, Alex Rankine takes a look at the international picture, asking which markets are looking solid and reliable, and which may be overheating slightly.

UK property investment is secure

He notes, ‘The 2008 financial crisis was caused by an overheated US housing market, but today America looks in much healthier shape, say Robert Armstrong and Ethan Wu in the Financial Times. While prices have soared over the past year, ‘mortgage-delinquency rates are parked near historical lows’. Low interest rates are keeping mortgages affordable.

Instead, UBS finds that Frankfurt, Toronto and Hong Kong are the cities most at risk of a bubble. The report compares prices to data on local incomes and rents and looks for signs of excessive lending and construction activity to determine the risk of a bubble.’

In comparison, whilst London is considered overpriced, it’s not considered anywhere near bubble territory.

In further comparison, cities like Manchester, Sunderland, Newcastle, Nottingham and other areas across the north and midlands are in a much stronger position, with much more sustainable demand, a stronger economy and steady growth across the sector.

For buy to let investors it’s comforting to understand the security and sustainability of the UK property market when considering investing and a longer term strategy to create and protect wealth.

Not just that, however, but when purchasing or investing in buy to let property in the UK there’s the added factor of huge demand for rental property and a severe lack of supply, which not only means that UK property is rising in value steadily and sustainably, but that it’s generating a healthy passive income which, more often than not, grows in line with inflation, meaning that you’re not losing money over the long term.

If you’re interested in investing in UK buy to let, why not get in touch with us today about the properties that we’ve got available across the UK?

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