Investing in UK Property: The Key to Meeting Housing Demand for Skilled Workers

The UK government is focusing on attracting the world's top talent to drive economic growth. One of the largest issues, however, is a severely acute shortage of rental homes. Unless there is immediate action to build more houses, the nation might not be able to provide for the skilled professionals it aims to attract.

High Demand for Rental Properties

According to figures from the Migration Observatory at Oxford University, 42% of foreign-born persons in the UK live in the private rented sector as opposed to just 16% of residents born in the UK. Among EU-born people, this rate is 52% for private rental homes. This shows the prevailing role that rental housing plays in offering an abode to highly skilled overseas workers.

Demand is currently exceeding supply. It has been reported by Savills that as many as one million new rental properties will be required by 2031 to maintain pace with growth in renters. Without this, staff who would like to move to the UK might not have suitable accommodation and therefore might choose not to make the move.

A Chance for UK Real Estate Investors

For property investors, this demand is an ideal opportunity. With rental supply falling short of demand, quality and well-positioned investment property can generate healthy returns without diminishing the UK housing. Buy-to-let investment in core economic centers—London, Manchester, and Birmingham—is an example that will fill the gap and provide homes for those professionals driving the UK economy.

Government Policy and the Need for Change

Despite the pressing demand for additional rental homes, recent government policy, i.e., rising stamp duty, has deterred investment in the private rented sector. The industry leaders, e.g., the British Property Federation (BPF), the National Residential Landlords Association (NRLA), and Propertymark, have called on the government to shift its strategy and embrace policies that support rental housing growth.

These bodies have highlighted the fact that if the UK is to be genuinely serious about drawing in the best and brightest, it needs to offer the accommodation in which to house them. Without incentives for developers and investors to build additional rented housing, the government's aspiration could be short-lived.

The Future of UK Property Investment

For those who wish to invest in UK property, the prospects are good. With high rental demand, low supply, and the UK being a business hub, property investment is a stable and durable asset class. To invest now, before policy changes catch on and demand continues to grow further, offers the potential for long-term capital value appreciation and secure rental yields.

For expert guidance on maximising UK property investments, call Magnate Assets today.