Property is an investment strategy ideal for those who want both short-term and long-term passive income.
Buy to let investors generate returns through rental payments and gain a lump sum once they sell their property, provided the value has increased.
Both rent prices and house prices in the UK are consistently increasing.
In November 2023, the UK’s average rent hit £1,279, according to HomeLet, up 9.63% compared to 2022.
Rent outside London has also seen a sizeable increase, with a 9.1% jump to £1,066, over 10% higher than pre-covid prices!
However, house price growth has slowed following Liz Truss and Kwasi Kwarteng’s mini-budget, which sent inflation sky-high. As such, property values have dropped, making UK houses more affordable following a period of high price growth post-pandemic.
Average UK house prices experienced a yearly rise of 0.80%
Real estate company Savills recently updated its industry-renowned five-year house price forecast for the UK.
It has been estimated to be a 17.9% increase in house prices by 2028.
The North West, in particular, is set to rocket with a rise of 20.2%.
These increases have occurred during economic turmoil and uncertainty, highlighting how safe the investment is.
Those considering how to invest £500,000 should explore buy-to-let opportunities in the UK right now for solid returns both now and in the future.