What are the Different Types of Property Investment in the UK?
Discover the diverse range of property investment types available that FOBEA facilitate in the UK, each offering unique opportunities for returns and growth.
Whether you're a first-time investor, a seasoned portfolio holder, and whether based in the UK or overseas, FOBEA will help you find an optimal investment and if required: manage your property, facilitate broker introductions, and assist with limited company setup, enabling a seamless and profitable investment experience.
Freehold Buy To Let Houses Completed and Off plan
Invest in brand new, freehold buy to let houses offering high ROIs of 10% NET+.
Benefit from no leasehold restrictions, no increasing ground rents, and no service charges. These properties come with full warranties and guarantees, making them a secure and profitable addition to your portfolio.
Offplan City Centre Apartment Investment Properties
Explore offplan property investments with starting prices that are below market rates, allowing for capital appreciation. Take advantage of choosing a desired floor and size and modern on-site amenities. Secure your investment early and capitalise on capital growth in high-demand areas.
Student Accommodation Investment
Take advantage of the thriving UK student accommodation market. With a growing student population and a significant undersupply of student housing, these investments offer high rental yields and consistent demand and occasionally rental guarantees. Invest in purpose-built student accommodation for assured returns.
HMO Property Investment
Invest in Houses in Multiple Occupation (HMOs) for higher rental income and diversified tenant profiles.
HMOs can provide flexible rental arrangements and higher yields compared to traditional single-let properties. Benefit from FOBEA’s comprehensive management services to maximise your investment returns.
Renovation Buy To Let Property Investment
Unlock the potential of underperforming properties through renovation investments. Transform dated properties into modern, high-yielding assets. Enjoy significant capital growth and increased rental income by revitalising prime locations with FOBEA’s expert guidance and hands-off process.
Is the UK still a profitable location for Property Investment in 2024?
Strong Market Resilience and Growth: Despite economic challenges, the UK property market has shown remarkable resilience. According to a 2024 report, house prices are expected to experience steady growth with notable increases in key regions such as Manchester and Birmingham, where prices are projected to rise by 19.3% and 19.2% respectively by 2027​.
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High Rental Yields: The rental market continues to thrive, driven by a significant demand for rental properties, especially in city centers. The average rental yield across the UK is around 5.3%, with certain areas achieving even higher returns​​. Cities like Derby and Birmingham are seeing rental price increases of up to 12% by 2026, reflecting a strong rental market​.
Favorable Economic Conditions: The UK economy is expected to avoid a recession in 2024, with GDP growth predicted to be around 1.1%​​. This economic stability, coupled with falling inflation rates, enhances the attractiveness of property investments as a secure avenue for financial growth.
Regulatory and Financial Support: The UK government continues to support the property market through various schemes and incentives. For instance, the extension of the Mortgage Guarantee Scheme makes homeownership more accessible, indirectly boosting the property market by increasing demand​.
Diverse Investment Opportunities: The UK offers a wide range of property investment opportunities, from student accommodations and buy-to-let properties to commercial real estate and off-plan developments. Each type offers unique benefits, allowing investors to diversify their portfolios and mitigate risks.
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sources: Market Financial Solutions / Joseph Mews
What are the well-known experts saying about this?
Take a look at what Martin Lewis had to say in January 2024
Key Take Aways:
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House Prices: Average UK house prices have stagnated, falling about 5% from their peak in 2022, with predictions of a further 1-2% decline in 2024 before a slight rise in subsequent years.
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Rental Prices: Rents have surged, increasing by 15% since March 2021, with no signs of slowing down.
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Interest Rates and Mortgages: Variable-rate mortgages follow the UK base rate closely, which has been steady at 5.25%. Fixed-rate mortgages are currently below the base rate due to future predictions of lower interest rates.
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Economic Outlook: Despite economic uncertainties, there is cautious optimism with the expectation of stabilising interest rates and potential for house price growth.
Analysis: Implications for UK Property Investors
Yields and Capital Appreciation:
House Prices and Capital Growth:
Martin Lewis and Robert Gardner predict a slight decrease in house prices in 2024 followed by modest growth in subsequent years. This suggests a stable but slow capital appreciation, making it a conservative market for investors looking for long-term gains.
Investors should consider locations with strong economic growth indicators and infrastructure developments to maximize capital appreciation potential.
Rental Market:
The continued rise in rental prices, up 15% since March 2021, indicates strong rental yields, particularly in high-demand areas. This trend is expected to persist, making buy-to-let properties an attractive investment for steady income.
The undersupply of rental properties compared to demand supports higher rental yields, especially in urban centers.
Interest Rates and Mortgage Strategy:
With the Bank of England's base rate steady at 5.25% and fixed mortgage rates expected to remain below the base rate, investors can benefit from locking in lower fixed-rate mortgages to secure better returns.
The expectation of falling interest rates could further reduce borrowing costs, enhancing investment affordability and potential profitability.
Economic Factors:
While there are concerns about economic challenges such as inflation and potential recession, the overall sentiment remains cautiously optimistic. Investors should stay informed about macroeconomic indicators and regulatory changes that could impact property investment dynamics.
Conclusion:
For UK property investors, the current market presents a mix of opportunities and challenges. The potential for high rental yields and the prospect of modest capital growth make it an attractive environment for strategic, long-term investments. However, investors should remain vigilant about economic trends and consider expert advice to navigate the evolving market effectively.
How You Can Get Started
Step-by-Step Guide: Your Pathway to Owning a Successful Offplan Property
FOBEA has streamlined the process of investing in offplan properties to make it accessible for all types of investors.
Here’s how you can start:
1
Consultation
Schedule a free consultation with a FOBEA property specialist to discuss your investment goals and explore suitable properties.
3
Reservation
Secure your property with a reservation payment, locking in the current price and terms.
5
Management
FOBEA will present AST and STL options for you to choose. FOBEA will market your property prior to completion to ensure no vacancies.
 Incredible Investment Opportunity in Manchester City Centre - FOBEA |
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2
Selection
Review the right property that meets your investment criteria and budget.
Extensive literature, floorplans, media, investment projections and payment plan will be provided.
4
Completion
Follow the development progress with regular updates from FOBEA, leading up to completion. Then follows rental incom and growth
6
Aftercare
Whether FOBEA manages your property or not, we will always be on hand to support and guide you with your portfolio and future acquisitions.
Mario Walgam, AT
"I always got quick replies and he got me into the right projects to get me ahead, look forward to working together in the future!"
Silas Walton, UK
"I was nervous of the process associated with renting my property. FOBEA have made the process very easy and have been a pleasure to deal with throughout. The rent guarantee insurance gives peace of mind and all correspondence has been prompt and informative of month to month bills and process. Great value for a quality service."
May Lau, UK
"I have worked with Lee from the beginning of purchasing my investment property last year. Lee is very prompt to respond to any query and he is thorough. I felt very well looked after as Lee ‘held my hand’ throughout the whole process. I wholeheartedly recommend Lee."