Property for Sale UK

The United Kingdom is made up of England, Wales, Scotland and Northern Ireland. It has a long history as a major player in international affairs and fulfils an important role in the EU, UN and Nato. The UK real estate market is very progressive. There are various big real estate developers in UK. London is one of the most attractive cities for indians to invest in real estate. Many UK real estate developers have developments in London and offer property for sale in London. Offerings include mostly London appartments for sale or flats for sale in London. Few of the big real estate developers in London are Taylor Wimpey, Berkley Homes, Regal Homes, to name a few.

 

FACTS

  • Population: 62.4 million (UN, 2011)
  • Capital: London
  • Area: 242,514 sq km (93,638 sq miles)
  • Major language: English
  • Major religion: Christianity
  • Life expectancy: 78 years (men), 82 years (women) (UN)
  • Monetary unit: 1 pound sterling = 100 pence
  • Main exports: Manufactured goods, chemicals, foodstuffs
  • GNI per capita: US $38,370 (World Bank, 2010)

 

RESIDENTIAL PROPERTY FACTS

Price (sq.m): €20,190

Rental Yield: 2.61%

Rent/month: €5,272

Income Tax: n.a.

Roundtrip Cost: 8.03%

Cap Gains Tax: 28.00%

Landlord and Tenant Law: Pro-Landlord

Political uncertainty dampens the UK’s property market

House prices in UK are still rising (though not in inflation-adjusted terms). The average house price in the UK rose by 2.8% (0% inflation-adjusted) to £209,971 (US$ 273,046) during the year to Q2 2017, based on the figures from Nationwide. Previous quarters had seen rises of 4.1% in Q1 2017, and 4.5% in Q4 2016.

In London prices decelerated sharply, with price rises of only 1.2% (-1.5% inflation-adjusted) during the year to Q2 2017.

Property for sale in UK have become affordable. The UK´s and particularly London´s previous dramatic house price rises were fuelled by four factors:

    • Immigration and population growth have been strong, especially in London.
    • Interest rates have been at record lows, with a large expansion of the money supply through “quantitative easing”.
    • The City of London (London’s financial centre) continues to boom.
    • Construction activity remains weak (though this is less true of London). Dwelling starts rose 0.5% y-o-y to 172,740 units in 2016. Dwelling completions increased 10.4% y-o-y to 168,370 units, according to UK’s Development for Communities and Local Government.

London’s yields are low

Last Updated: Aug. 31, 2017
PRIME CENTRAL
LONDON – Flats		 COST (£) YIELD (p.a.) PRICE/SQ.M. (£)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
50 sq. m. 790,600 2,119 3.22% 15,812 42.38
120 sq. m. 2,166,840 4,715 2.61% 18,057 39.29
NW8: St. John´s Wood flats
1 BR 645,528 1,908 3.55% n.a. n.a.
2 BR 1,284,157 2,949 2.76% n.a. n.a.
3 BR 2,100,914 5,712 3.26% n.a. n.a.
SW1: Belgravia, Pimlico, Westminster flats
1 BR 968,863 2,845 3.52% n.a. n.a.
2 BR 1,842,523 4,642 3.02% n.a. n.a.
3 BR 3,612,453 8,470 2.81% n.a. n.a.
SW3: Brompton, Chelsea flats
1 BR 981,810 2,673 3.27% n.a. n.a.
2 BR 1,578,479 4,051 3.08% n.a. n.a.
3 BR 2,955,114 10,659 4.33% n.a. n.a.
SW7: Knightsbridge, South Kensington flats
1 BR 1,272,207 2,873 2.71% n.a. n.a.
2 BR 1,650,418 4,668 3.39% n.a. n.a.
3 BR 4,201,771 11,239 3.21% n.a. n.a.
W1: Mayfair, Marylebone, Soho flats
1 BR 1,023,368 3,656 4.29% n.a. n.a.
2 BR 1,809,830 5,444 3.61% n.a. n.a.
3 BR 2,828,696 12,425 5.27% n.a. n.a.
W8: Kensington flats
1 BR 1,031,724 2,402 2.79% n.a. n.a.
2 BR 1,528,456 3,942 3.09% n.a. n.a.
3 BR 2,515,927 7,489 3.57% n.a. n.a.
W11: Holland Park, Notting Hill flats
1 BR 751,594 2,290 3.66% n.a. n.a.
2 BR 1,064,851 3,051 3.44% n.a. n.a.
3 BR 1,497,233 4,844 3.88% n.a. n.a.
All yields are gross – i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Districts researched:
Belgravia, Brompton, Chelsea, Holland Park, Kensington, Knightsbridge, Mayfair, Marylebone, Notting Hill, Pimlico, Soho, South Kensington, Westminster
Source: Global Property Guide and ZOOPLA Definitions: Data FAQ See also: Update Schedule

 

London´s residential prices have stopped rising in the higher-end districts. But London remains by any measure extraordinarily expensive.

That impacts rental returns, since rents have not risen as much as prices.  Gross rental yields, i.e., the gross annual rental return on an investment in an apartment if fully rented out, are now quite low in London.

A 50 square metre (sq. m.) apartment in prime central London is likely to cost you £750,000.  If rented out, it will give you a gross rental return of around 3.2%

A 120 sq. m. apartment in prime central London is likely to cost you £2,200,000.  If rented out, it will give you a gross rental return of around 2.6%

Yet surprisingly, larger apartments sometimes have higher yields – particularly in the more expensive districts of London.

United Kingdom Statistics

 

KEY HOUSE PRICE FACTS
Square Metre Prices  €20,190
Rental Yields  2.61%
Rents  €5,272