Property Investment UK: How to Invest in Property? (5 Ways in 2022)

How to Invest in Property in 2021 How to Invest in Property in 2021

Interested in property investment UK and want to know how to invest in property in 2022? 

If you are, then this is the perfect guide for you. 

Here, you will find out five ways you can start investing in UK property in 2022. 

You will also learn: 

  • Why choose property investment UK 2022 
  • How to start investing in property in 8 steps 
  • What is the best property investment UK strategy? 
  • How much money do you need to invest in property? 
  • Latest property investment tips 

Keep reading this ultimate guide to property investment UK in 2022 to learn more… 

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Why Choose Property Investment UK 2021 Why Choose Property Investment UK 2021

Why Choose Property Investment UK 2022? 

With investing becoming increasingly popular, and with so many ways to invest in 2022, you may be unsure if property investment in the UK is right for you. 

However, while property is undoubtedly more old-fashioned than the (somewhat confusing) world of Bitcoin, it’s an old favourite for a reason. 

Offering a strong long-term investment, property investment in the UK can sustain a consistent and reliable income for several years with minimal risk or pressure. 

There are currently three major reasons investing in UK property in 2022 is a good idea. 

  1. UK house prices are currently growing at their fastest rate since 2004.
  2. Rent is the highest it has ever been at £1,061 pcm on average, according to HomeLet.
  3. Property demand is higher than it ever has, with buyer demand per property for sale more than double pre-pandemic levels, according to Rightmove.

With Zoopla anticipating this surging demand for property will last into 2022, and with UK house prices set to rise on average by 21.5% by 2025, according to Savills, there has likely never been a better time to invest. 

This means that now is the most affordable time you’re going to find a rental property to invest in. 

And with the latest Autumn budget 2021 announcement, the future looks bright for property investment in the UK.

If you have a smaller budget, particularly less than £200,000, now is the ideal time to get investing in UK rental property. 

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Top 5 Property Investment Strategies Top 5 Property Investment Strategies

How to Get into Property Investment UK: The Top 5 Property Investment Strategies 

Want to know how to make the best property investment UK venture possible? 

Then here are the top five most popular property investment UK strategies for 2022.  

The types of investments will also be given a pros and cons list to show why you should (or shouldn’t) invest with that method. 

It’s important to note that your preferred type of investment will depend heavily on your investment goals, which is something we will address later. 

The Perfect Residential Buy to Let Investment in 4 Steps The Perfect Residential Buy to Let Investment in 4 Steps

 

1. Single Let Property – Residential Buy-to-Let

The benchmark for property investment in the UK, traditional buy to let property is likely the first strategy that comes to mind when investing in property. 

A single buy to let property is a property you rent to one tenant – including families. 

Single buy to let properties and traditional residential buy to let property is likely the most popular form of investing in UK property as it’s easy to understand and get started with. 

Simply put, you just need to buy a property and find a tenant to get started. 

You can make the perfect residential buy to let investment in just four steps. 

  1. Research the best area for investment. 
  2. Find an attractive property equipped with modern amenities in that area. 
  3. Find the right tenant. 
  4. Move your tenant in and earn monthly rent! 

Property investment tips: You should target city-centre locations and young professionals for the most lucrative opportunities. This could mean you target new-build homes or stylish apartments near transport links to attract your tenants.

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Luton Prices from £179,950

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2. Student Property Investment – HMOs and PBSA 

Another one of the most popular types of investments and a top way to invest in property is through student property investment. 

Student property investment is incredibly similar to traditional buy to let property, except that you focus solely on students. 

You can target the student market in two main ways, through HMOs or purpose-built student accommodation. 

HMOs 

Houses in multiple occupancies, otherwise known as HMOs, are properties where each room is rented to a different tenant. 

These tenants often share some amenities, like a kitchen or bathroom, but individually pay rent. 

HMOs can be tricky, especially for beginners.  

With more tenants comes more potential wear and tear and more time spent managing the property. 

Similarly, HMOs are subject to stringent rules and laws, with many cities’ trying to limit the rise of HMO conversions.  

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Purpose-Built Student Accommodation 

Requiring less of an explanation than HMOs, purpose-built student accommodation is student property that has been specifically designed to house students. 

PBSA has shot up in popularity in recent years thanks to offering investors a reliable income stream during the academic year. 

According to Savills, over £5.77bn was spent on PBSA in 2020 – the highest-ever amount. 

Students have become more and more likely to want higher-quality modern living spaces, putting many students off from living in older HMOs. 

This is why PBSA is ideal for students, as it has been built specifically to cater to these needs. 

There’s also less time needed to manage the property, as most student accommodation comes equipped with its own management team, allowing a completely hands-off investment. 

Currently, there is huge demand for PBSA, with full-time students outweighing available beds by 3:1. 

For this reason, there’s likely never been a better time to make a student property investment UK. 

To learn more about how to invest in student property, be sure to read our guide. 

Property investment tips: It’s a good idea to invest in student hotspots with a high number of students, high-quality universities, and a good retention rate. Popular student cities include Liverpool, Manchester, Birmingham, Newcastle, and Leeds.

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Off-Plan Buy to Let Property Off-Plan Buy to Let Property

 

3. Off Plan Buy-to-Let Property 

The most affordable way to buy UK rental properties is through off-plan. 

Off-plan property is a property that is available to purchase but hasn’t been completed. This means you can buy the property while it’s under construction or still in the planning stage. 

You can buy both residential and student property off the plan. 

It may seem like an odd idea to invest in an asset that hasn’t yet been completed, but there are four distinct reasons why many investors opt for off-plan property. 

  1. Properties are sold at below-market rates as an incentive for investors. 
  2. If you buy with a property investment company, you can get assured rental income for several years. 
  3. Your property can increase in value before it’s even been completed. 
  4. You will get a brand-new cutting-edge property that hasn’t been lived in. 

However, the obvious downside is when buying off plan property, you will have to wait until the property has reached completion before you can start seeing returns on your investment. 

However, if you’re patient enough, off-plan is the perfect investment for those looking to maximise their earnings and save money. 

Property investment tips: Invest with a property investment company. This way, you can get assured rental yields and get extra incentives like free furniture packs for your property. Find out more in our guide.

Buy to Sell/House Flipping Buy to Sell/House Flipping

 

4. Buy-to-Sell/House Flipping 

Perhaps the most challenging property investment strategy for beginners, buy to sell is the process of buying a house to sell on for a quick profit. 

This means an investor will not rely on rental yields, rental income, or tenants, and will instead look to buy a cheaper property to sell for a considerable profit. 

This can be difficult for two reasons. 

  1. You’ll need to be able to identify properties with the potential to earn a considerable profit. 
  2. After finding this property, you may need to give it a fresh makeover, which could mean getting started with property development. 

Many people get into property to get a consistent stream of reliable income.  

However, house flipping does not offer this benefit, as you will only be making money when you’re working. 

For this reason, if you’re a beginner, this method may not be ideal for you. 

Property investment tips: Crunch the numbers before you start your investment. House flipping can go wrong and eat up a budget, so plan out your venture carefully to prepare for all eventualities.

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Property or Stock Market Property or Stock Market

 

5. Property on the Stock Market – REITs 

If you want to know how to invest in property without buying directly, REITs are a fantastic way of investing in property. 

REITs, otherwise known as Real Estate Investment Trusts, are companies that buy, manage, and own properties on behalf of their shareholders. 

By investing in REITs, you are able to indirectly invest in property on the stock market. 

Real Estate Investment Trusts utilise a mutual funds model, where the company uses the money pooled from investors to buy up real estate. 

Noteworthy for investors, these companies must give at least 90% of their income to shareholders to be classed as a REIT. 

However, REITs work like any other company on the stock market, which brings the pros and cons of stock investment. 

Other Property Investment Strategies Other Property Investment Strategies

Other Investment Strategies Worth Considering 

While they didn’t make our list of the top 5 best investment strategies, there are plenty of alternative methods out there that may be worth your consideration. 

This includes: 

  • Holiday home investments 
  • Overseas property investment 
  • Property development 
  • Property investing crowdfunding 
  • Commercial property investment 

You can check out a complete list of 10 investment strategies in our property investment strategies guide. 

Alternatively, if you’re more focused on property development, be sure to read our step-by-step guide to becoming a property developer. 

Invest From £38,950

Embankment Exchange

80% Units Sold

Manchester Prices from £179,950

6% Projected Rental Returns

Up to 34% Below Local Comparable

Invest From £50,000

The Hive

Creating a Buzz in the Luton Market

Luton Prices from £179,950

5% Rental Returns 

75% Sold Out - Units Selling Fast

3 Units Remaining

The Summit

UK Leading Developer

Liverpool Prices from £139,950

Assured 7% NET Rental Yields

15-20% Below Market Value

The Best Property Investment UK Strategy The Best Property Investment UK Strategy

What Is the Best Property Investment UK Strategy?

Many people ask what the best property investment strategy is, but unfortunately, there isn’t a definitive answer for everyone. 

First and foremost, investment in UK property and in the bricks and mortar sector is an incredibly personal experience, and what you want out of an investment will directly correlate with what strategy you choose. 

If you’re looking for a long-term sustainable strategy, then residential and student buy to let is likely for you. 

If you have less money available right now and are willing to wait to get your hands on the keys, then off-plan property is ideal. 

But if you’re looking for a shorter-term investment, then Real Estate Investment Trusts are ideal. 

However, for our money, the current best property investment strategy for the highest returns is likely buying residential or student property off-plan.

This is because you get the benefits of investing for monthly rental income and capital appreciation, as well as being able to save thousands by buying off the plan. 

How Much Money Do You Need to Invest in Property?

Before you start property investing in the UK, you need to know exactly how much money you need to invest. 

The cost of property investment can be split into three different categories. 

  1. The direct costs of purchasing a property. 
  2. The ongoing costs of owning a property. 
  3. The costs upon the sale of the property 

Let’s take a look at each in turn, so you get a comprehensive look. 

Aside from purchasing your property, which the current UK average is around £250,000, you will also encounter a potential list of expenses. 

These are: 

  • Legal fees 
  • Survey fees like a snagging survey 
  • Landlord insurance/ buy to let insurance 
  • Stamp duty tax 
  • Land Registry fees 
  • Mortgage fees 
  • Auction fees 

The following costs you will expect to encounter during the length of your property ownership. 

They are: 

  • Mortgage interest rates 
  • Ground rent 
  • Property management fees 
  • Maintenance costs 
  • Corporation tax if you form a limited company 
  • Landlord insurance/ buy to let insurance 
  • Rental income tax 

Finally, we have the costs involved when you finally decide to sell your property. 

This includes: 

  • Capital gains tax 
  • Estate agent fees 
  • Legal fees 

To get a deeper look into the money involved with property investment, be sure to check out our guide to how much money you need to invest in property. 

If you want to know more about the types of taxes you will encounter during your UK property investment, look at our complete guide to buy to let tax. 

The Direct Costs of Purchasing a Property

Aside from purchasing your property, which the current UK average is around £250,000, you will also encounter a potential list of expenses. 

These are: 

  • Legal fees 
  • Survey fees like a snagging survey 
  • Landlord insurance/ buy to let insurance 
  • Stamp duty tax 
  • Land Registry fees 
  • Mortgage fees 
  • Auction fees 

The Ongoing Costs of Owning a Property

The following costs you will expect to encounter during the length of your property ownership. 

They are: 

  • Mortgage interest rates 
  • Ground rent 
  • Property management fees 
  • Maintenance costs 
  • Corporation tax if you form a limited company 
  • Landlord insurance/ buy to let insurance 
  • Rental income tax 

The Costs on the Sale of the Property

Finally, we have the costs involved when you finally decide to sell your property. 

This includes: 

  • Capital gains tax 
  • Estate agent fees 
  • Legal fees 

To get a deeper look into the money involved with property investment, be sure to check out our guide to how much money you need to invest in property. 

If you want to know more about the types of taxes you will encounter during your UK property investment, look at our complete guide to buy to let tax. 

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How to Invest in Property With No Money UK How to Invest in Property With No Money UK

How to Invest in Property With No Money UK? 

If you’re thinking of starting a 2022 property investment in the UK with no money, you may encounter some problems. 

Buying UK real estate isn’t cheap, and if you want the highest returns possible, you may struggle to find an ideal investment. 

If you have a smaller budget of 50k, for instance, it’s possible to make a lucrative investment still if you invest in off-plan property. 

However, if you have very little money, you can always trade property stocks such as REITs, or opt for investment funds. 

How to Finance a Property For Investment How to Finance a Property For Investment

How to Finance a Property for Investment? 

When buying UK real estate, you have a few options on how you can finance the venture. 

  1. Finance the deal yourself 
  2. Buy-to-let mortgage 
  3. Bridging loan 
  4. Remortgage your current property 

If you’re new to property investment, you may not realise that buy-to-let mortgages are slightly different from more traditional mortgages. 

With this in mind, we’re going to take a quick look at buy-to-let mortgages so you know what to expect. 

Buy-to-Let Mortgages 

While similar to traditional residential mortgages, there are some distinct differences between BTL mortgages that investors need to know. 

  1. Buy to let mortgages are interest-only, which means you will only pay the loan’s interest every month without touching the overall debt.  
  2. BTL mortgages are more expensive, with a deposit between 25-40%. 

The amount of money you can borrow also depends on your rental income. 

Typically, mortgage lenders require your income to be about 25 or 30% higher than the monthly interest payments. 

In practical terms, if your interest payments will be £700, you will need to earn between £875 to £910 in rent per month. 

If you decide to go for a BTL mortgage, be sure to shop around for the best mortgage deals to increase your return potential. 

For a full deep dive into buy to let mortgages check out our complete 2022 guide. 

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How to Start Your Property Investment UK Journey?

To make a successful UK property investment, it’s important to plan ahead. 

With this in mind, here are eight easy steps you can follow to get the ball rolling and start your property investment UK journey. 

Before you start thinking about property investment opportunities UK, you need to evaluate what you want out of a venture. 

  • Do you want more disposable income?  
  • Are you planning for retirement?  
  • Do you want to see instant returns or can you wait long-term? 
  • How much are you willing to risk? 

These questions are vital in informing exactly what strategy you should opt for. 

If you’re looking for instant returns, property can be good with monthly rent, but its true benefits come when selling real estate in the long-term to maximise income. 

Likewise, if you’re risk sensitive, property is a good strategy as it locks up your finances for an extended period, so it isn’t subject to short-term market changes. 

How much money do you have to spend on your property purchase? 

By identifying your budget, you will likely inform exactly what property strategy you’re investing in and the location in which you will buy your property. 

Property values have huge regional variations in the UK, with the likes of Liverpool far more affordable than London. 

If you have £100k to spend, for instance, you can find excellent student or residential apartments in Liverpool. 

The same budget, however, will mean you will likely not find any properties in London worth purchasing, as the average price there is over £700,000. 

Now that you’ve thought about your goals, you can decide which strategy is right for you. 

For those with £100k to spend, and are willing to wait long-term for the best returns, then off plan residential buy to let property is perfect for you. 

This way, you can find property at an affordable price, and then sell it for a huge profit in 10 or 15 years time. 

If you want regular returns but aren’t too interested about long-term growth, then student property is an excellent choice for you. 

Student property generates massive returns in the UK (often over 8% NET), but doesn’t grow in value as much as residential property. 

Whatever your goals, there is always a strategy out there for you. Be sure to speak to a financial adviser to learn more on this. 

While you will need to budget money to purchase a property, you will also need to think about the finances during your ownership. 

This includes paying stamp duty, maintenance costs, mortgage payments if applicable, income tax, and capital gains, amongst others. 

You can learn about stamp duty using our free stamp duty calculator. 

Not every property investment UK area is made equal, with some regions offering far higher returns than others. 

When evaluating an area’s property investment potential, you need to think about affordability, rent, rental yields, price growth potential, rental demand, and more. 

To assess the affordability of an area, you can use websites like Zoopla or Rightmove to find the current average property price in that postcode or city. 

You will also find rental figures you can use to calculate the average gross rental yield (the return on investment through rent without calculating expenses) to see the investment potential. 

For price growth potential, you will be able to see the latest regional house price forecast from Savills. 

Alternatively, you can just check out our top 10 guide to the best places to invest in property where we have done all the hard work for you! 

Depending on your budget, you may require the use of a buy to let mortgage. 

If this is the route you wish to take, make sure you shop around and find the best mortgage deals for you. 

Always talk to a financial adviser if in doubt. 

Traditionally, property investors would need to shop around in auctions or property portals to find their ideal property. 

However, more and more investors are choosing to use the services of a property investment company. 

Property investment companies will help investors purchase property by handling a lot of the troubling and time-consuming paperwork. 

Using their contacts, they will find the best investment opportunities on the market, so you don’t have to spend time looking. 

Here at RWinvest, we are a property investment company who has helped over 75,000 investors in the last 17 years. 

To learn more about property investment companies, be sure to check out our guide where we discuss in detail the benefits of investing in UK property through an investment company. 

After buying your first rental property, it’s time to start looking at building your property portfolio. 

Diversification is key here, but it’s important to start small. 

Firstly, just invest in one type of property, like residential property, and focus on one area. 

After you get familiar and confident, you can start branching out and buy different property types and in different cities. 

By owning multiple properties you increase your profits tenfold while also minimising the risk of owning just a single property. 

Then, after several years, you can sell some of your properties for a massive profit, while keeping others to give to your children (be wary of inheritance tax) or to just continue earning regular income for you. 

To learn more about how to build a property portfolio, be sure to read our beginners guide.  

1. Think About Your Goals

Before you start thinking about property investment opportunities UK, you need to evaluate what you want out of a venture. 

  • Do you want more disposable income?  
  • Are you planning for retirement?  
  • Do you want to see instant returns or can you wait long-term? 
  • How much are you willing to risk? 

These questions are vital in informing exactly what strategy you should opt for. 

If you’re looking for instant returns, property can be good with monthly rent, but its true benefits come when selling real estate in the long-term to maximise income. 

Likewise, if you’re risk sensitive, property is a good strategy as it locks up your finances for an extended period, so it isn’t subject to short-term market changes. 

2. Set a Budget

How much money do you have to spend on your property purchase? 

By identifying your budget, you will likely inform exactly what property strategy you’re investing in and the location in which you will buy your property. 

Property values have huge regional variations in the UK, with the likes of Liverpool far more affordable than London. 

If you have £100k to spend, for instance, you can find excellent student or residential apartments in Liverpool. 

The same budget, however, will mean you will likely not find any properties in London worth purchasing, as the average price there is over £700,000. 

3. Choose Your Property Investment UK Strategy Based on Your Goals

Now that you’ve thought about your goals, you can decide which strategy is right for you. 

For those with £100k to spend, and are willing to wait long-term for the best returns, then off plan residential buy to let property is perfect for you. 

This way, you can find property at an affordable price, and then sell it for a huge profit in 10 or 15 years time. 

If you want regular returns but aren’t too interested about long-term growth, then student property is an excellent choice for you. 

Student property generates massive returns in the UK (often over 8% NET), but doesn’t grow in value as much as residential property. 

Whatever your goals, there is always a strategy out there for you. Be sure to speak to a financial adviser to learn more on this. 

4. Plan How Much Money You Need

While you will need to budget money to purchase a property, you will also need to think about the finances during your ownership. 

This includes paying stamp duty, maintenance costs, mortgage payments if applicable, income tax, and capital gains, amongst others. 

You can learn about stamp duty using our free stamp duty calculator. 

5. Research Your Investment Area

Not every property investment UK area is made equal, with some regions offering far higher returns than others. 

When evaluating an area’s property investment potential, you need to think about affordability, rent, rental yields, price growth potential, rental demand, and more. 

To assess the affordability of an area, you can use websites like Zoopla or Rightmove to find the current average property price in that postcode or city. 

You will also find rental figures you can use to calculate the average gross rental yield (the return on investment through rent without calculating expenses) to see the investment potential. 

For price growth potential, you will be able to see the latest regional house price forecast from Savills. 

Alternatively, you can just check out our top 10 guide to the best places to invest in property where we have done all the hard work for you! 

6. Research Buy to Let Mortgages

Depending on your budget, you may require the use of a buy to let mortgage. 

If this is the route you wish to take, make sure you shop around and find the best mortgage deals for you. 

Always talk to a financial adviser if in doubt. 

7. Find a Property Investment Company

Traditionally, property investors would need to shop around in auctions or property portals to find their ideal property. 

However, more and more investors are choosing to use the services of a property investment company. 

Property investment companies will help investors purchase property by handling a lot of the troubling and time-consuming paperwork. 

Using their contacts, they will find the best investment opportunities on the market, so you don’t have to spend time looking. 

Here at RWinvest, we are a property investment company who has helped over 75,000 investors in the last 17 years. 

To learn more about property investment companies, be sure to check out our guide where we discuss in detail the benefits of investing in UK property through an investment company. 

8. Build Your Property Portfolio

After buying your first rental property, it’s time to start looking at building your property portfolio. 

Diversification is key here, but it’s important to start small. 

Firstly, just invest in one type of property, like residential property, and focus on one area. 

After you get familiar and confident, you can start branching out and buy different property types and in different cities. 

By owning multiple properties you increase your profits tenfold while also minimising the risk of owning just a single property. 

Then, after several years, you can sell some of your properties for a massive profit, while keeping others to give to your children (be wary of inheritance tax) or to just continue earning regular income for you. 

To learn more about how to build a property portfolio, be sure to read our beginners guide.  

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Get UK Property Investment Opportunities With RWinvest

We hope you enjoyed our ultimate guide to property investment in the UK. 

If you’re interested in buying rental properties then we’re here to help. 

RWinvest is an award-winning property investment company specialising in residential and student property. 

If you’re interested in the latest UK property investment opportunities and are looking to buy investment properties in the UK, then we are the company for you. 

Nominated as Business of the Year in the prestigious Echo Regional Business Awards, there is simply no other investment company as respected and as trusted as us. 

We are currently offering fantastic UK property investment opportunities from just £74,950 with up to assured 8% NET rental returns. 

Our current top UK property investment opportunities are: 

  1. Embankment Exchange Manchester
  2. ELEMENT – The Quarter Liverpool 
  3. Merchant’s Wharf Manchester 
  4. The Hive Luton 
  5. East and Green Birmingham 

To check out these UK property investments and make your investment in UK property, just click the links to be taken to their property pages for more information.

Be sure to also check out our complete property investment guide, containing even more information on everything you need to know before you invest.

Make the best UK property investment possible. Invest with the best by investing with RWinvest today. 

Invest From £38,950

Embankment Exchange

80% Units Sold

Manchester Prices from £179,950

6% Projected Rental Returns

Up to 34% Below Local Comparable

Invest From £50,000

The Hive

Creating a Buzz in the Luton Market

Luton Prices from £179,950

5% Rental Returns 

75% Sold Out - Units Selling Fast

3 Units Remaining

The Summit

UK Leading Developer

Liverpool Prices from £139,950

Assured 7% NET Rental Yields

15-20% Below Market Value