A Snapshot of The UK Property Investment Market With Ummar Hanif.

The strength of Investments within real estate have never been so important. The last 30 years has shown the world that the, UK property sector has a long, credible record of resilience and stability in times of wider economic uncertainty.

Before the pandemic, we had seen a ‘city-centre renaissance’, leading to strong house price and rental growth across major UK towns and cities. This was driven by strong demand for town and city living with a chronic shortage of high-quality rental property in these locations. We forecast an average of 20% growth across major conurbations including Manchester, Leeds and Birmingham over the next five years, this is for both for house price and rental growth.

UK house prices rose by 20.4% over the last three years, compared to just 8% over the previous three years. While growth is starting to return to normal pre pandemic levels, this shows how the UK property market remains resilient despite wider economic turbulence.

The rental market is also seeing significant growth, with key drivers cited as the strong demand for city living, the end of Help to Buy, and rising mortgage rates, meaning a proportion of prospective buyers have delayed their decision to purchase and remain in the rental market. This has driven rents up, further impacting the supply and demand imbalance which underpins the rental growth across all major UK cities.

We are therefore still seeing a significant number of enquires from institutional investors relating to new build to rent projects with city centre locations. This is still one of the fastest growing and most attractive asset classes in the UK for large financial institutes, a trend which we expect to continue.