What does a property in London or in the UK mean to you?
A City Pad
A Place to Study
A Safe Haven
London properties, in good locations will always perform well in the long term, in spite of short term property market dips. When the property market is not so good, rents often rise, and research shows long-term underlying rental growth throughout London and the UK remains strong as London remains Europe’s financial capital one of the world’s most sought after property safe heavens and, the UK is highly ranked in the World Bank’s Ease of Doing Business Index. Demand for rental properties consistently outstrips supply and this is likely to continue.
Size of the UK rental market
- 2.5 million rental properties (2005)
- 3.5 million rental properties (2010)
- 5.4 million rental properties (2015)
- 20% of households expect to be long term tenants (1 in 5 persons)
Whether you are a regular investor or an accidental landlord who needs to rent out your home we’ve got the expertise to help you understanding property in London.
‘Central London – is Zone 1 on the tube map’, Greater London Zones 2-6 and Outside Zone 6 are the commuter towns and business districts which serve jobs in London and at our 5 London airports (Heathrow, Gatwick, Luton, Stanstead, London City).
For property investments Central London falls into the following areas;
How to know where to buy your London property investment
Because London is a collection of villages it does not suffer in the way that many overseas emerging cities do. Yes there are emerging areas but generally what is desirable, and what is not, are pretty constant.
Understanding UK Property
What do you want from your UK property investment?
…….capital growth or maximum income
If it is capital growth you are looking for then you’ll need to invest in the following types of property:
- prime properties.
- super prime properties.
- properties in up and coming areas, in a strong market.
- well located properties near to new transport hubs.
- properties in an under supplied area, say around a new college.
To get a good income return on your investment, (we call it a yield) then you’ll need our help to understand London. (rent / capital value = yield). Ringley monitor residential investment yields across all London property postcodes and can advise you on yields, rents and capital values.
Ringley’s guide: When to buy London property or UK rental investments
- In a global context many an economist would say as a rule of thumb if in the USA it takes more than 9 months to sell a home the whole world is going to a recession.
- For London investment property the London stock exchange, (FTSE 100) is the lead indicator on what is likely to happen in the property market 6 months on.
- The bottom of a recessionary cycle seemingly never goes below low in the previous cycle.
- In a recovery because financial reporting is quarterly, it generally takes 6 months for property (which is largely driven by the media, consumer confidence and finance availability) to react;
- Double dip recessions are not new, they tend to happen every 2nd recession or If markets fall by more than 50% (1930’s, 1970’s, 2008)
- Triple dip recessions are statistically unheard of, so you need to watch for the recovery;
- When investing, the past does predict the future, even though technology has advanced, recessions are largely caused by human reactions to market conditions – so history does seem to repeat itself – the trend charts are the same.
- Any property cycle will have the following elements:
- Drag (typically 2 years);
- Release (typically 6 months uneven recovery;
- General recovery;
- Boom (booms after double dip recessions are generally shorter)
Buying London property off plan (in a new built development)
Ringley work with a number of reputable house builders to source property investments to buy off plan. Buying a property in a new development ‘off plan’ is an essential part of how housebuilders secure their cashflow and can secure investors some great early purchase discounts and the prospect of capital growth to ride a rising market. Deals to be negotiated include ‘guaranteed rental returns’, or buying the show house or flat and then renting it back to the housebuilder.
Adding value to existing assets:
Many London properties have the potential to be worth more and Ringley can help you release valve in an asset by remodelling layouts, adding a roof extension to. We offer a full range of support services to help you buy properties to let, refurbish and prepare for letting.
- Ringley Legal LLP – our Solicitors practice to help with acquisitions, wills and tax planning;
- Ringley Building Engineering – to help you convert houses to flats, convert the loft-space, prepare planning submissions or for full refurbishments;
- Ringley Valuation – Can help you with valuations, to extend your lease, or, raise finance;
- Ringley Property Management – great for landlords who own the whole property or block, we can manage the lettings and the block keeping you legally compliant;
- Ringley Agency – to help you with acquiring new properties for rent and to manage your portfolio.
So whether you decide to invest in a new build property or refurbish an existing residential property, Ringley’s professionals will help find the ideal investment, arrange a mortgage (if required) and will provide you with first-hand technical support and advice.