£600 Million Boost for Housing in High-Demand Areas
The UK property market continues to suffer a lack of supply of homes with demand, especially affordable homes, outstripping the supply of properties across the country. One element that prevents certain areas offering viable housing solutions is local infrastructure.
The chancellor, Sajid Javid, recently announced £600 million of new investment to unlock the ability to build upwards of an additional 50,000 homes in high-demand areas.
Where will this investment go?
The five new projects that will receive funding are in London, Central Bedfordshire and Essex, all areas where housing is in high demand.
Mr Javid said he wants to see more homes built in the places that people want to live but that at the moment the infrastructure is not in place to support these properties being built. These funds will help unlock the ability to build properties in some of the areas in the highest demand in the UK.
How will this improve my property investment position?
Improvements to infrastructure in an area ultimately lead to an increase in the appeal of a location to both renters and home buyers.
This has a positive impact for investors in terms of property rentability and potential for capital growth.
Since it was confirmed to be going ahead the announcement of Crossrail sent property prices along the route soaring. When considering where to invest in property looking at confirmed and potential plans for improvements to local infrastructure can give you an indication of what the future might hold for the area.
Whether these improvements include new train stations, new roads, new schools or overall improvements to transport in an area they are all likely to have a positive impact on a property’s value.
High hopes for property in coming years
Previous governments have allocated funds to housing and infrastructure and in many instances there have been extremely successful outcomes across the country.
Whilst this most recent input of funds will go into only locations in the South East of England there is a fresh hope that this new government will be looking at locations across the country.
The lack of available housing continues to support the demand for rental property across the UK. Whilst looking at future plans for an area might provide some indication of potential for capital growth the general overall demand for rental property in the UK continues to support investing in property as an asset class.
Looking at what the future might hold for an area is a key factor when looking at investment property. It’s equally important to establish what appeals in the immediate to make a property have rental appeal and factors that will encourage steady capital growth.
Looking at historical price trends only tells you one part of the story, these figures are not reliable as a sole source to base a property’s potential for capital growth; there are a multitude of factors which contribute to buoyant property value appreciation.
How can we help?
Like all investments, it’s important to make a well-considered purchasing decision. Not all investment properties are created equal. Our investment property consultants have extensive experience advising clients on the best rental property to buy to suit their requirements and investment plans. To talk to us about how we can help you with your UK property investment plans you can call us on +44 (0) 2039507939 or send us an email at email@example.com.