Tips for 2024 UK Property Investment
The property world can move fast.
Not only does the property landscape look entirely different from twenty or even ten years ago, but in 2023 alone, we’ve experienced several exciting developments in the property market.
When investing in real estate in the UK, it’s important to stay on top of the latest trends and property news.
So, what does an investor need to know about investing in property in 2024? Here’s our top 5 tips.
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1. Keep Researching and Stay Ahead of the Market
While this advice is timeless, in 2024, it’s more important than ever to keep up to date with the different trends and developments in the property market. This is because there are more options than ever, meaning there is more to consider when making a property investment.
Of course, the basics will remain the first consideration – rental demand, rental growth, capital growth, local amenities, and planned regeneration. When investing in buy-to-let in the UK, these factors can give you an idea of whether or not a particular area or type of property will perform well.
But the UK property market is also susceptible to political or social changes, so it’s worth keeping on top of property-related current affairs to plan a successful property investment.
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2. Explore Different Property Types
More options for property investors have appeared on the market in recent years, with various property types to play with. In order to stay ahead, investors should ensure that they are fully informed of what kind of opportunities each one presents when looking at investment properties for sale.
For example, there’s been a shift towards build-to-rent developments, as the sector recorded record growth in 2023. This type of property is gaining more attention as more tenants are renting for longer and are on the lookout for high-quality rental homes to live in the long term.
Another fairly new property trend is the eco-property. This is a property that has been designed with energy efficiency in mind, and they have been growing in popularity as climate change has become a pressing topic. These types of property aren’t just better for the environment but can also bestow plenty of advantages on property investors. Not only can the cost of energy efficiency upgrades be avoided, but studies have shown that eco-friendly homes are more popular, with tenants willing to pay more to live there.
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3. Keep in Mind that Location is Key
With the rise of hands-off investments, investing in any area of the UK is easier than ever, regardless of where you are based.
Sometimes, investors want to target a specific demographic for their tenants and choose the location accordingly. This could mean focusing on property in Luton to target commuters or selecting a university city like Liverpool or Preston property investment for student accommodation.
In other cases, many investors choose to invest in certain cities based on profitability after thorough research. When researching various UK property hotspots, certain areas reveal themselves to be the most promising when it comes to rental demand or capital growth or have other advantages for property investors.
This even includes overseas investing. For example, there has been a substantial increase in Chinese property investors acquiring residential real estate in foreign countries.
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4. Identify Your Target Tenant Before Investing
As mentioned, the best area for your investment will vary according to the type of tenant you want to target.
But there are also many other ways to maximise your potential return on investment by considering the kind of renter you want to occupy your property.
For example, investors may look at luxury new-build properties to target affluent young professionals. Investing in the most modern developments is one way to invest in off-plan property. It is also work looking at options such as Airbnb investment property for sale as this has seen a huge increase in demand.
If you decide to rent to students, there are some practical features to consider. For example, the property should have a fast internet connection and communal areas for socialising.
It’s also important to remember the previous two tips and make sure the location and property type are most suited to your ideal tenant.
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5. Decide on a Property Investment Strategy
These aren’t the only options you must consider when it comes to modern property investment. Strategy is also a key factor.
In 2024, it’s important to consider whether you want to go into short-term or long-term letting. The popularisation of short-term letting, thanks to websites such as Airbnb, has changed the face of modern property investment. Nowadays, investors should calculate whether or not they could make stronger returns through short-term holidays or long-term standard residential letting. This may apply to coastal areas or popular holiday destinations, like Southend-on-Sea investment properties.
Investors should also explore hands-on versus hands-off investments. These days, hands-off is becoming more attractive to many investors. Using a property management company to carry out the day-to-day landlord duties means that investors can have more flexibility when choosing the location of their investment, and they can collect passive income every month rather than be responsible for collecting rent and looking after the property.
Many other strategic approaches to property investment should be thoroughly researched before beginning your investment journey.