UK Property

With royalty, castles, and some pretty good fish and chips, the UK is a popular destination for travelers worldwide. Even gray, wet days only add to the ambiance and popularity of this history-laden land. It’s no wonder then that tourism in the UK is up over 5% from last year, topping out at over 30 million people. Spending is up, too, topping the already-phenomenal 13 million pounds that the UK saw in 2004. While these figures do attest to the popularity of the UK with foreign tourists, they do little to show the “big picture” of the UK’s real estate and investment future.

Business
Sure, property prices in the UK are high compared to other European nations. And yes, the taxes can be financially overwhelming—especially for foreigners not accustomed to such high rates. However, one of the reasons that the UK is a relatively “safe bet” for property investors is its business. With modern technology and easy foreign access, the UK has many thriving, longstanding businesses supporting its economy. While high tourism rates can’t hurt property values, it’s the stable economy and reliable businesses in the UK that make it a safe bet for anyone looking to buy property.

Accessibility
The UK has a certain business advantage, as it’s readily accessible to other countries. However, its economy is also accessible. While the UK has earned its reputation for inflicting painful compliance regulations and taxes on potential purchasers, also makes a strong effort to welcome new outside business. Currently, there is over $10 billion in foreign investment in the UK, lending evidence to the fact that the UK welcomes foreign investment. For example, 2005 saw corporate real estate inflows of over 69 million pounds—far above the 22.6 million pound inflow of 2004. Obviously, investors from the United States and the Middle East, just to name a few, have bolstered the UK’s real estate market, and almost guaranteed even better prospects for 2007.

Not looking to buy property for commercial or investment use? This still plays in your favor, as outside investment only strengthens the economy—and preserves the value of your property.

Turnover
In 2000, turnover of UK property reached almost $50 billion. And this phenomenon didn’t just occur in London or other metropolitan areas. Other areas throughout the UK were bought and sold, leading to property value increases as high as 35%.

Price
Yes, UK properties can be pricey. However, as shown earlier, the economy seems to show no sign slowing or lowering property values. If anything, property values are likely to only appreciate in value, making property in the UK a tempting offer for investors and “normal” home purchasers, as well.

Clearly, the UK is defined by much more than royalty, fish and chips, or Big Ben. While these elements can only add to the UK’s charm, they can only paint one stroke of a broad, promising financial future for UK residents, investors, and property owners.