For many, 2020 was a horrific year. Many lives were lost due to the covid-19 pandemic, and the economy suffered greatly after three national lockdowns.
Despite this, though, real estate investment flourished.
The average UK property surpassed the £250,000 mark for the first time ever and increased at its highest rate since 2004.
As of December 2020, property prices were 8.05% higher than a year prior, according to the UK House Price Index.
These growth levels have continued in 2021. January 2021 prices were around 7.49% higher than January 2020.
In fact, UK real estate is set to increase in value by another 4% in 2021, with predictions of a 21.1% growth by 2025.
That means if you purchased real estate right now, you would already see over a 20% profit by 2025.
This figure is just the average for the UK, too, with certain areas far surpassing these predictions.
The current highest prediction is for the North West, with prices set to rocket by 28.8% by 2025. This is closely followed by Yorkshire and the Humber, with a 28.2% growth. The lowest growth rates are seen in London, with a 12.6% rise in value by 2025.
It’s not just house prices that are increasing in value, either.
According to the Homelet rental index, the average UK rent is now £984 – a 3% rise year-on-year.
Savills predicts that rent values will increase by an additional 17% by 2025, putting even more money into investor pockets.
As you can see, with such high levels of growth, investing in real estate can be an incredibly fruitful venture.
Despite this, though, there are important things you need to consider before investing in property. Not all property investment strategies are made equal, and there are certain factors to evaluate.