Introduction to Property Investment: Why Invest?
The demand for housing has never been higher. Between 2014 and 2015, the population increased to around 65.1 million (up 500,000 in just 12 months). If the population continues growing in this way, it will exceed 70 million people by 20262 – and they’ll all need somewhere to live. It’s also likely that homes with just one person will increase by 159,000 per year, leading to the UK becoming the most densely populated country in the EU3.
Rising housing demand in the UK
To keep up with demand, the government has predicted that at least 232,000 new homes need to be built in England every year4. However, as it stands in 2017, we are building fewer homes than during any other period since the 1920s.
Due to the constant demand for housing, property investment is often seen as a safer investment than other asset classes (such as stocks and shares). While the economy can and does affect housing prices, for medium and long-term investment it remains the safest asset class.
Different ways to invest
There are many ways you can invest, ranging from converting your current residential mortgage to a buy-to-let mortgage to investing in a property fund.
We cover all the common ways to invest in this guide, to help you decide which would work best for your investment goals. How do you make money from property investment?
If you don’t want to go all in and buy a property by yourself, you can invest into a fund that then invests into a property. There are also property maintenance services and management services that you can invest in.