UK Property Investment Solutions for Discerning Clients

Before answering this question, I believe it is important to understand first and foremost the merits and demerits of holding on to cash versus investing in property instead. Typically, we are all familiar with the term ’cash is king,’ but not when cash is eroded by inflation i.e. adversely affecting the value of your money.

For instance, when an investor is losing money because the inflation rate exceeds the interest earned on a savings or current bank account, your losing money.

Inflation is the term used to describe the increase in prices over time. Whilst the inflation rate is a way of measuring the decline in the purchasing power of money over time, based on the following terms:

• Nominal value: the ‘face’ value of money

•  Real value: the ‘relative’ value of money in terms of the goods and services that you are able to buy with the money

• That’s the power of inflation, and one of the biggest reasons holding onto cash doesn’t guarantee wealth.

Whereas If you choose a high cash flow property in the UK, you will be paid to hold an asset that is likely to increase in value over time.

The UK housing market is stable and has consistently experienced strong demand. The Land Registry’s UK House Price Index indicated that house prices in the UK increased by 7.8% over the year to June 2022. Post Covid-19 scenario house prices in the UK continue to rise following UK government interventions coupled with high levels of demand.

In fact the UK is facing a housing shortage, demand for housing, particularly affordable housing, is higher than current supply. With rental demand far outstripping supply and rents reaching new highs, investors are likely to be in a strong position if you choose to invest now.

A few other reasons why investing in UK real estate is attractive:

• High Rental Yields

• Regeneration Infrastructure Investments

• Positive Price Growth

• Long-term Political stability

• Strong Currency

• Lifetime Renters