Market Analysis by using the Property Market Indicators
share-price-1013626_1920To evaluate UK as an investment area, we have used the RIDER approach.

Ratio
Average annual salary in the UK:
UK: £518 per week * 52 weeks = £26 936 annual salary per year

Average house price in the UK
UK: £176 581 (annual increase 7.1%)

Ratio indicator = Average house price/Average annual salary: 
UK: £176 581 / £26 936 = 6.56

Low 3-5 Buy/sell/hold/add value/rent
Medium 5.5-7 Buy/sell/hold/add value/rent
High 7.5-10 Rent if positive cash flow

UK as an investment areas have low to medium ratios and offers opportunities for both cash flow strategies, flips and capital appreciation.

Interest rates
The interest rates of today are historically low and very favorable for investors.

Demand and supply
UK has a shortage of houses and the demand is high. Housing supply at 100-year low.

Employment
Unemployment rate is about 6% in the UK . If unemployment rates raises, social housing could be an interesting strategy to pursue.

Rental demand and yield
Rental demand is high in the UK. Gross annual rental yield is moderate at 5.88% in the North West and an average void period of 26 days per year. Letting prices is about £450-600 pcm in the outskirts of Greater Manchester and xxx in Leeds. 20% of population will rent within next five years.

Other factors are:

  •     Politically and economic stability in the region
  •     Record levels of population growth
  •     UK’s regulation is Landlord friendly

Conclusion
UK as a country offers great opportunities Real Estate Investments. The indicators are more favorable in the north of the UK and lower in London and the south of the UK. Profecta Capital Group invest mainly in the South of the UK but are looking to expand into other areas.

Get in touch with Profecta to learn how you can introduced to real estate investment.