LEEDS, England--(BUSINESS WIRE)--
10 years ago, 10% deposits and ease of access to institutional finance saw an influx of people becoming property investors within the UK. With the UK Banks still being cautious and less capital in the market, investment properties are less accessible to individuals…but that doesn’t mean to say that investment isn’t possible.
Property and real estate is now the focus for many investment funds who are looking to create attractive portfolios for UK investors. Recent figures released by the Bank of England show further evidence of issues with access to funding, as a sharp fall in the number of mortgage approvals was seen in February (following an unusually active January).
With property holding value and often resulting in higher rates of return than other commodity-led funds, investments are being sought by individuals who have cash available but unable to gain mortgages from the cautious banks.
Still, the Nationwide released March figures last week from their House Price Index (http://www.nationwide.co.uk/~/media/MainSite/documents/about/house-price-index/Mar_2014.pdf). Their chief economist Robert Gardner commented;
“There is little doubt that the recovery in the housing market is now firmly established, with activity levels picking up and house prices recording their fifteenth successive monthly increase in March.”
“There are some tentative signs of moderation, with the monthly pace of price growth slowing to 0.4% in March down from 0.7% in February and 0.8% in January. Nevertheless, viewed in annual terms, price growth is continuing to run at a robust pace, with the price of a typical home 9.5% higher than in March 2013.”
Simon Morris (http://www.simonmorrisuk.com/), Independent Property Consultant who advises investors and funds on low risk but higher returns on property investment adds
“investing in property will always be attractive and in the long term, yield higher returns. However, if you are looking to invest, ensure that the fund choses properties carefully. There are still risks in terms of location and type of property, do your research in terms of how the funds are choosing their property”
With prices looking to hold and the UK still being an attractive location for foreign investors. Investment into funds that include attractive property portfolios are becoming more attractive to investors looking to make more return than the banks are offering at present with lower interest rates.
Simon Morris is an independent property advisor working with Funds and Investment Companies to ensure property chosen for funds and portfolios delivers agreed return based on low risk.
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