UK property has proven its resilience as an asset able to weather periods of political and economic uncertainty. Since the EU referendum in June 2016, investor appetite for bricks and mortar investment has remained persistently strong, offering a competitive rate of return at a time when traditional safe haven assets seem unable to deliver high yields. As a consequence, nine million UK investors are looking to real estate during the unfolding Brexit negotiation period. In response to the mounting pressure of market demand, the average UK house price is on track to rise from £220,094 to £300,000 by 2025.
The UK’s attractiveness as a destination for property investment can be attributed to the diverse range of real estate opportunities on offer across the country. The charms of traditional and heritage-style houses have proven consistently popular, offering quintessential British charm, historical legacy and unique architectural integrity, extending from Tudor manors to Jacobean houses and Victorian terraces.
At the other end of spectrum lies new-build properties, boasting customisable designs, open communal spaces and modern fittings. Moreover, for those seeking to marry the charm of a traditional house with the latest in contemporary design, refurbishment projects have become an increasingly popular investment venture for those seeking a fast turnaround – approximately 30,000 homes sold in England and Wales in 2015 had been previously bought less than a year earlier. Of these, 95% of the homes sold had been refurbished in the interim.
To uncover the sentiments of UK society towards new-build and traditional properties, MFS has surveyed a nationally-representative sample of 2,000 UK adults. With market demand significantly outweighing supply, the research also reveals how investors perceive the Government’s capability to address the housing crisis, and prescribes a series of measures to ensure prospective homebuyers are in a position to act on their property intentions, while positively contributing to the nation’s housing supply.
Click here to download MFS’ latest report – ‘New-Build vs Traditional Real Estate: UK Homebuyers Decide”