The UK buy-to-let market has a long-standing reputation as an excellent investment option for UK expat and foreign national investors. This is especially true for those looking for a lucrative long-term buy-to-let investment strategy.
Increased Buy-to-Let Confidence
There is improved confidence amongst investors in the UK expat and foreign national market at the moment - And this renewed confidence has hugely positive implications for the long-term prospects of the UK buy-to-let market.
According to a report from UK research and consulting group ‘Pegasus Insight’, buy-to-let investor confidence increased in the fourth quarter of 2024, with 37% responding that they felt ‘good’ or ‘very good’ about the future prospects of their property portfolio - Up from 33% on the previous year.
The resurgence of investor confidence will translate to a big boost in activity as optimistic buy-to-let investors move to get involved in the UK’s lucrative property investment market.
Why is Long-Term Investment So Good?
Rental property is unique when compared to other long-term investment methods as it offers two distinct income streams: rental income and capital growth
Capital growth has a number of beneficial effects. The most obvious one is the earning that can be realised when the property is sold.
But the increased equity that a landlord realises in the property can also be utilised through remortgage products to provide funds which can be reinvested into another property. This is one of the main reasons that long-term property investment provides some of the best results for UK expat and foreign national investors.
According to a report from UK based estate agents, ‘Hamptons international’, in 2021 landlords who sold UK property which they had owned for less than 10 years earned an average of £91,270 more than they paid for it.
Further, the average rental income over the same period was £112,000 bringing total income to over £203,000 for a 10-year period - Lots of factors can influence these figures positively: the type of property, the location, type of tenant, etc.
Short-Term Returns
Aside from the capital growth that drives the profitability of long-term investment, short-term returns can also be realised through high rental yields.
The good news for UK expat and foreign national investors is that rental yields in the UK are increasing too.
The average rental yield in the UK increased to 7.4% in Q4 of 2024 – up from 6.8% in Q4 in 2023.
Further, the buy-to-let yields for landlords are currently nearing a 10-year high - With these positive yields translating into optimism from UK expat and foreign national investors.
Short-term returns are hugely important for the day to day running of an investment and the better the rental yield performs, the easier the investment is to manage.
A Perfect Combination
The combination of short-term and long-term profitability is one of the main reasons that UK buy-to-let property is such a desirable investment.
UK expat and foreign national investors are making monthly profits from rental income, especially in the fiercely competitive rental market that has been the norm in recent years.
However, the long-term earnings for the investment add another element, making UK property investment a top-notch investment vehicle and very unique compared to other methods of investment.
For further information about our current selection of UK investment opportunities, please do not hesitate to talk further with us.
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