UK Property Prices On The Rise Again
Leaving behind 2022, when housing prices peaked all over the world, a similar picture is seen in the UK. While real estate prices in the country experienced the highest increase since 2020, the increasing value of real estate motivates global investors.
As we leave behind 2022, when housing prices peaked around the world, a similar picture is seen in the UK in the first days of the new year. According to data released by Rightmove, one of the UK’s online real estate platforms, property prices in the country are experiencing the biggest increase since 2020.
It was noted that the average property price rose 0.9% to £362,438 as of January. Arda Ulaş, General Manager of Turkish origin international real estate investment management company Rotas Investment, which cooperates with Property Alliance Group, which develops construction projects in many major cities of the world, said that global investors are also taking action as real estate gains value day by day. England provides details on UK investments, mortgage terms and rental yields. has been said.
Real estate prices in the UK are on the rise again – Arda Ulaş, General Manager of 1Rotas Investment
“Much more advantageous than Turkey”
There are two types of mortgages in the UK. One is buy-to-live and the other is buy-rent, an investment home bought to rent. As lenders see the rent of the house as collateral, the mortgage, which is an investment, becomes easily accessible to foreigners.
Those who document that their household income is at least 15-20 thousand dollars per year can apply for a buy-use loan. Loan application can be made up to 75% of the house to be purchased. The interest rates of the loans vary between 5.5-7.5% annually and their maturities are up to 25 years. Rental income largely covers loan payments. Arda Ulaş, General Manager of Rotas Investment, shared that it is possible to buy a house in England with a low down payment because it is possible to buy a house with suitable loan facilities, and stated that housing loan interests and payment periods are much more advantageous than in Turkey. Turkish citizens will be able to use loans by paying a 25% down payment. moved.
Investment trends point to the northwest region
According to 5-year forecasts from international property organizations such as LL and Savills, the highest return on property investment in the UK is predicted to be in the northwest region, which includes Manchester. The increase in urban transformation studies also increases the expectation for the HS2 high-speed train line, which will open the London-Manchester distance in 2026 and reduce the London-Manchester distance to 1 hour and 7 minutes. With this project, the expectation of increase in Manchester was recorded as 28 percent. Expectations are for investment in residential construction for investment and rental purposes in the centers of developing and big cities in the UK, as is the case all over the world. However, it is very important that they do not overlook some procedures in this process. So what should citizens pay attention to when buying housing in the UK?
While investing in any asset is already a compelling decision for people, the fact that this asset is abroad increases the importance of taking conscious steps. So much so that owning a house in a country located in the center of Europe, such as England, requires full knowledge of the legal responsibilities and rights in that country.
Deposit should be kept high
Before buying a house in England, it is necessary to determine a budget for the property price and expenses and to determine from the beginning how this budget will be used. Because most buyers need either a mortgage or a loan when buying a home. The amount demanded is determined over the multiples of the specified household income. In addition, the higher the deposit, the more advantageous mortgage and loan agreements are.
Credit score should be checked while preparing for a mortgage application.
Calculating your credit score is an important step before talking to a broker or advisor when buying a home in the UK. Especially in housing loans, incomes and current expenses are taken into account within the framework of solvency assessment and credit card movements are examined. For this reason, existing loan debts need to be closed and regulated. The higher your credit score, the more likely you are to be accepted.
The factors affecting getting a housing loan are listed as follows:
- The size of the deposit
- Credit score
- Loan type
- Term of the mortgage agreement
Address must be specified in identity checks
A legal representative must be elected