How To Invest £200k in 2023/24

There are several things you should do with £200k before you consider investing any money, as even safe investing options come with some level of risk.

You should also consider what kind of investment you want to make. Think about what financial goals you want to achieve, and this will decide what kind of investment you want to make.

• Do you want regular income or a lump sum? This will play a key role in what kind of property investment you should make. A regular income is preferable in most cases as it allows for a larger return on your investment, but a lump sum can be useful as well.
• What is your appetite for risk? Any form of investment comes with risk, but some property investment opportunities are safer than others. Some forms of investment can have massive returns but are also subject to fluctuating market trends.

Potential Reward: 5/5

Potential Risk: 2/5

Property investment is one of the strongest options for investing £200k in the current market climate. Across the UK, we are seeing record growth in the property market that is expected to continue for years to come.

Rent from tenants is earned every month so you will have a consistent form of income. Current statistics show tenants pay an average of £1,279 per month in the UK.

A property’s value goes up with time, so you may choose to sell your property in the future for a profit.

Property is not a liquid asset, so you cannot immediately sell to see a profit quickly, such as with cryptocurrency or stocks. Property investment could also come with a higher initial cost, as the average house price in the UK is currently £285,009, according to the latest data from the House Price Index.

However, there are several ways of making it more affordable, such as mortgages and investing in areas like Manchester and Liverpool, where properties are below the average price.
So, if you are considering investing £200k in 2023/24, property investment is a safe bet.  We recommend making a buy-to let business plan to help you decide on whether property investment is right for you.

Potential Reward: 5/5

Potential Risk: 2/5

Eco-friendly homes and apartments are designed to minimise environmental impact and reduce energy consumption. This is also known as Eco investing.

These properties are constructed using sustainable building materials and incorporate features promoting energy efficiency, such as triple-glazed windows, high-quality insulation, and energy-efficient lighting and heating systems.

The growing demand for eco-conscious living has extended beyond homeownership to encompass the investment sector. Investors are increasingly recognising the appeal of eco-friendly properties, driven by their sustainability credentials, energy efficiency, and potential for higher rental yields.

A recent article by Property Reporter highlighted an increase in younger tenants and buyers seeking greener homes, with 98% of survey respondents (aged 18-34) expressing that they would improve the sustainability of their property if they had the funds to do so. This trend underscores the increasing demand for eco-conscious living among these generations, reinforcing eco-friendly properties as a lucrative investment option.

These properties often incorporate cutting-edge features that reduce energy consumption and environmental impact, such as solar panels, air source heat pumps, rainwater recycling systems, heat recovery ventilation (HRV) systems, and smart home automation. These features not only make the property more sustainable but also lower the homeowner’s energy costs. Additionally, eco-friendly properties can command higher rental rates, making them an attractive investment option for buy-to-let landlords.

At the same time, as the transition to a greener future accelerates, eco-friendly properties are poised to become even more valuable assets, offering investors a secure and sustainable source of income.

Potential Reward: 3/5

Potential Risk: 3/5

As the name implies, student property investments are investment properties that specifically target the student rental market.

The main types of student property investments include:

• Purpose-Built Student Accommodation (PBSAs)
• Houses in Multiple Occupation (HMOs)

Student accommodation provides a stable and dependable source of rental income, as there is a continuous demand from new students seeking accommodation throughout the school year. Additionally, the property is projected to appreciate in value over time, making it a promising investment opportunity for future sale. Learn about some of the alternative property investment strategies available to you with our free guide.