Whilst the South African market is subject to extreme volatility, an investment in UK property presents a great opportunity to diversify your portfolio, secure stable returns and utilise your discretionary allowance for substantial gain. For overseas investors, UK residential property continues to be the preferred asset class to invest in. A market history of continued capital appreciation and high rental yields mean investors can make substantial returns on a UK residential property.
Despite its substantial value, the UK property market is still chronically undersupplied, and 300,000 new homes will be required each year to meet this demand. Despite ongoing projects across the country, the required number of new homes is still 3 times more than what is actually expected to be delivered each year.
Since the Brexit referendum the UK housing market, though affected, has remained largely resilient. The UK is a country that has always been considered safe and well governed, with a stable currency. The economic fundamentals, and a 30-year historical analysis, proves the sheer strength and resilience of this asset class, and a long time go-to for South Africans.
Generally speaking, we advise our clients to invest in residential apartments, primarily new builds which come with building guarantees and are much more desirable to the rental market. Student accommodation in the UK is a huge industry. The government encourages developers to build Purpose Built Student Accommodation (PBSA) to solve the shortage of student specific properties. This asset class is highly resilient and performs even in times of crisis, offering guaranteed returns, fully managed hands-off investments at lower entry levels.
Hurst & Wills have in depth knowledge of all areas of the UK. Our residential investments in the North of England, primarily the thriving cities of Manchester, Birmingham and Liverpool are perfect for the South African investor driven by yield and growth., whilst established markets such as London offer long term stable returns.
To learn more about the different property regions in the UK, please click the link below.
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