Since the mid 20th century, property prices in the UK have increased almost every year. Though there have been a few ups and downs, the average cost of a property has continually risen over the decades.
As a result, property has become a popular investment. So much so that the Office for National Statistics has discovered Britons think investing in property is the best way to save for their eventual retirement. If you’re one of the millions of people considering putting your hard-earned cash in British bricks and mortar, here’s why property makes such a good investment for retirement.
Though the ONS survey found that Britons thought employer-backed savings schemes were the safest option for a pension, it showed the majority of people felt property was the best way to maximise their returns. Workers believe that by investing in property, they can make their money work harder, giving them the chance to secure their financial future and save for a comfortable retirement.
Why property is a good investment
One of the strongest property markets in Europe, the UK has shown consistent and impressive growth in house prices for a number of years. According to research by Nationwide, property in the UK increased by a huge 5.1% in the year to June 2016, with experts at the Centre for Economics and Business Research predicting the average cost of a home will rise by a whopping £40,000 in the next five years.
As well as benefitting from an increase in the value of their investment property, savvy savers will be able to earn rental income if their property is tenanted. Though the amount of rental income will depend on the location, size and condition of the property, in many cases, rental income will be sufficient to cover mortgage payments and other associated costs.
How to invest in property
There are lots of ways to invest in property. The route you choose will depend on your personal circumstances. In most cases, savers will see the best returns by working with a company that specialises in property investment. These businesses have a good working knowledge of their local area and will be able to advise clients on lucrative opportunities as well as take each investor’s situation into account.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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