Over 50% of UK property investors are set to further invest in 2023 despite continuing economic uncertainty, with additional activity planned by more experienced investors, according to a new survey from bridging finance broker, Finbri.
What advantages does property investment provide?
As over half of UK property investors are looking to expand their portfolios in 2023, many benefits would have been considered to determine if this would be worthwhile - a few of these benefits include:
Capital appreciation: Property prices are predicted to drop by 5-10% in 2023 - and with many homeowners struggling to obtain a mortgage and repossessions on the rise, the increasing number of properties available on the market will be a prime opportunity for investors to expand their property portfolio. As the economic situation improves, prices are expected to increase by 2% in 2024 and 4% in 2026.
Additional income: With rental demand on the rise, tenants are often willing to pay a premium for good quality properties in desirable locations. Experienced investors will be able to take advantage, hoping to achieve high yields (the amount of rent as a proportion of the property value). The average rental yield in the UK is 4.71%, but this varies from location to location and researching where the highest yields are will provide investors with a strong indication of where they should be looking to expand their portfolio.
Property investment can be a great way to diversify your portfolio and generate additional income, but it's important to research to discover which locations are better for investment. Keep an eye on interest rates, as they are expected to rise over the next few years and be aware of developments in the market that could make it more competitive.