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Impressive 2014 leads into a stable 2015 for UK property investors

February 19, 2015Article by Charlotte Ashton

Data from the Office of National Statistics has revealed that house prices in the UK rose 9.8% in the 12 months to December 2014, in an impressive year for property investors. Now, 2015 looks set for a stable year ahead, according to the latest Knight Frank UK Residential Forecast & Risk Monitor.

Solid but unspectacular

“Stability is definitely the word for the UK’s housing market in 2015,” comments Ray Withers, Chief Executive of specialist property investment company Property Frontiers. “It offers strong returns in a solid environment, which is great news for property investors looking for stability in their portfolios.”

Withers’ views are echoed by those of economist Howard Archer, who has predicted a “solid but unspectacular” house price rise of 5% over the course of 2015. Knight Frank are a little more conservative in their projections, predicting a rise of 3.5% for the UK’s mainstream residential sales market.

2015: The year for buy-to-let

Such solid and sensible rises will no doubt play an influential role in the thinking of many prospective investors currently eyeing up the UK’s buy-to-let market in the run up to Pensions Freedom Day this April. The Knight Frank Residential Forecast anticipates UK rent rises of 2.2% over the course of the year and second tier cities are the ones to look out for, observes Property Frontiers’ Ray Withers,

“Investors should be looking to the regions and thinking creatively about where they purchase, when it comes to buy-to-let properties this year. New build and refurbished apartments are looking strong when it comes to achieving strong yields and the UK’s second tier cities are the places to be. Worcester, for example, is in the middle of a housing boom, while Bicester is also attracting considerable attention.”

Waterfront homes will be another key trend for property investment during 2015, such as Property Frontiers’ superb development at Salford Quays in Manchester. Custom Quay is the conversion of an iconic commercial building with stunning water views. Five floors of luxury apartments will be topped with a panoramic communal roof garden, making this one of the city’s most exciting residential developments this year. Duplexes and mews homes will complete the development, which is available for investment from just £126,000, with up to 75% LTV finance.

“Solid price and rent rises are excellent news for cautious investors,” concludes Withers. “Many of those looking at the UK market currently are new to property investment and the conditions are perfect for their first foray into this exciting sector. For old hands, stable conditions are also attractive and make up an important part of a mixed portfolio.”

For further details of buy-to-let investment opportunities in the UK, contact Property Frontiers today or call +44 1865 202 700.

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