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Why capital growth will never go out of style

June 9, 2015Article by Ray Withers

The UK’s booming buy-to-let market may at times seem to be all about the yields. Investors are (quite rightly) keen to know just how much they can expect to make per year for each property that they own and rent out. But profiting from the property sector is about more than just attractive yields, important though those are.

Capital focus

Capital growth is just as important an element of a buy-to-let property as the annual returns and investors should be sure to know an area’s history and likely future in terms of price rises before they select a property in which to invest.

The UK offers a number of hotspots right now with excellent potential for capital gains. Indeed, news for the whole country is positive in terms of property prices, with Nationwide reporting an increase in prices of 4.6% in May 2015, compared with the previous year.

Future predictions are also rosy, with Rightmove and Oxford Economics forecasting upward growth of 30% across England and Wales over the coming five years. The figure increases to 33% for London, but the really exciting story is that of the South East.

The London overflow

As extortionate London rents and purchase prices push young professionals to seek accommodation further and further away from the city, the capital’s commuter belt is enjoying a significant boom. The Rightmove and Oxford Economics projections for the South East are that prices will soar by 37% to 2019, with certain areas set to grow even faster, such as Brighton at 41%.

For those of us in the property sector, the potential for capital gains on this scale is excellent news and I am delighted to be able to present Park View Apartments in Brighton to Property Frontiers’ investors at this time. The high spec, two bedroom/two bathroom apartments provide everything that young professionals are looking for, all set on the edge of Brighton’s charming Preston Park and just five minutes from Preston Park Station, from where trains direct to London Victoria take just over an hour. Prices range from £330,000 to £420,000, with up to 4.7% yield expected.

Park View Apartments are precisely the kind of accommodation that commuters into London are looking for – well located, close to local amenities and just a five minute walk from the train station. They provide an ideal home in a tranquil setting, making it easy for residents to live in Brighton and yet spend their days working in London.

For more information about leading buy-to-let investment opportunities in Brighton and other UK cities, contact Property Frontiers or call +44 1865 202 700.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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