Guide for American Investors
Why Invest in UK Property?
First, the strength of the dollar and the relative weakness of sterling certainly work in your favor. Dollars now buy much more in Britain than they did in 2016, so the exchange rate makes UK properties considerably more affordable.
In the last 12 months we have seen an upturn in US enquiries. Judging by media reports, the phenomenon isn’t just a short-term ‘blip’ or limited to our own clients. Towards the end of last year, ONS published figures showing that foreign ownership of British residential property had risen by around 180% since 2010. There are now almost 250,000 homes registered to overseas buyers. Of course, not all of those will be buy-to-lets; some will be second homes.
Although the UK doesn’t have the world’s fastest rate of capital growth right now, it has shown itself to be a reliable long-term performer. If short-term gains were all that US investors were interested in, then they need look no further than their own country. House prices grew there by something like +17% over the course of 2021, and they’re averaging around +11.5% so far this year.
Serious investors are generally looking well beyond the short term, and in that respect, the UK’s track record has always looked impressive. It has proven itself to be a reliable market when it comes to property, typically delivering returns that have been well over the rate of inflation.
Investment Areas:
Buy To Let
Holiday Lets
HMO Investments
Student Property
Resale Property
To find out more about investing in the UK Propety Market, take a look at our in-depth article here.