Good returns, build quality and resale ease

Good rates of return: The UK property market offers very good returns, if you choose wisely. Average UK house prices are 250% the level of 10 years ago with London at 270%.
- Average UK rental yields are now 6-7% and rising, with the possibility to achieve up to 10% even in good areas. Percentage returns can be multiplied by leveraging your capital in the form of a mortgage (mortgage rates range from around 2-5% in the UK). In China, rental yield stands at around 1-3% in most cities. In addition, UK rents have increased by around 6% in the past year and are projected to increase by around 20% in the next five years.
- We believe that a chronic shortage of property stock in the UK is likely to lead to significant price appreciation in the medium and long term. The UK Government has been advised that a net addition of 240,000 to 290,000 new properties every year between 2008-2028 will be needed to satisfy the anticipated growth in UK population (from 62 million today to 70 million by 2028). Yet the number of new properties actually being built was just 78,000 in 2009 and only 100,000 in 2010.
- There is an exceptional and growing level of interest from overseas investors in UK property and this shows no sign of abating. This has helped to drive central London prices up more than 10% in the last year. The price increase is more stable than has been seen in some other countries’ major cities, where growth has become volatile and highly speculative.
- Increasingly, investment in quality UK (especially London) property is seen by overseas investors as a safe-haven in times of global economic uncertainty. Many global investors are therefore preferring to invest in London real estate rather than traditional safe haven investments such as gold, US dollars and Swiss Francs, which are proving rather volatile.
Build quality: The UK has very strict controls on the quality of residential buildings, meaning UK properties, old and new, are almost always structurally very sound and can be expected to last for very many years. Indeed, most of London’s houses are at least 80 years old and houses from the "Georgian" and "Victorian" eras, (18th and 19th Century) are amongst the most highly sought after for overseas buyers. New-build apartments and houses undergo rigorous checks during their construction phase by local government inspectors.
Easy resale: With an established and dynamic real estate market, it is very easy to sell property in the UK. This means that you can relinquish your property investment when you need to, with relative ease and only modest expense. There are also no restrictions on the transfer of any sale proceeds to an investor’s home country.