Your Partner in Prosperity

First port of call for UK property investment opportunities and guidance

Explore Investments

Your Partner in Prosperity

First port of call for UK property investment opportunities and guidance

Explore Investments

What we do: Investment Property UK


One Touch is your first point of contact for property investment in the UK because we uncover the best places to invest in UK property with the highest capital growth and strongest rental demand. What's more, we even provide you with objective information on how to invest in property and some useful tips for investing in UK property. Once you have start having an idea of which properties to invest in your own personal investment consultant to guide you through the process.

11+

Years Trading

1758

Properties Acquired

High

Annual Returns

One Touch property consultants are an experienced team who will share their expert knowledge to help you take an investment decision with confidence and ease

Best Places to Invest in UK Property 2020

Best Places to Invest in UK Property 2020 | UK Property Hotspots 2020

We uncover the key drivers that will push towns and cities into the best areas to buy property; the UK property hot spots are determined by the UK property market trends.

Some of the best places to invest in such as Birmingham, Leeds, Liverpool and Newcastle have modest average house prices. They are each seeing an emergence of creative and tech sectors, and areas such as the Baltic Triangle in Liverpool and Digbeth in Birmingham have really come into fruition. Co-working space in Leeds initially had a slow take-up but has since accelerated and its strong local economy combined with JLL rating it as the top place for house price and rental yield growth, makes it an ideal city to invest.

Read further to find out what are the factors that drive up property prices? How do you look for them? Find out where the best places to invest in property by clicking the green arrow...

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Best Property Investment UK



Where are the areas for investing in UK property?

Flexible workspace is attracting start-up companies to towns and cities which offer it. This type of workspace offers more flexible contracts where businesses do not have to give much notice to get out of, and at a lower price. Usually there will be no fixed space and hotdesking is a regular occurrence. It’s understandable that a start-up business would favour a flexible contract as opposed to a traditional office. In times of uncertainty, new businesses would not necessarily know whether they need to scale-up or scale-down operations, so having a space which can afford them either is vital.

With the surge of start-up businesses and flexible working conditions, young professionals will follow. It’s not just start-up companies that will utilise flexible workspace. Research conducted shows that 69% of global corporations plan to increase their usage of co-working spaces. 44% have started that flexible space will comprise one-fifth of all office space within the next three years. 75% have stated that it will increase personal productivity and 55% have stated it will allow for increased flexibility. The demand is clearly there, and the winners will be the towns and cities who provide it as it will aid in job creation - one of the main drivers of the property market. As more jobs are created in these towns and cities, workers will follow, and they will need a place to reside. Gain an understanding of the fundamentals of the UK property market which will help you identify the best areas for investing in our buy-to-let property guide

Is it a good time to invest in property?

Before we even consider the best places to invest, you may be wondering if it is a good time to invest in property? There are a number of factors that work in your favour should you decide to buy. Firstly, since 1970 there has been a decline in the volume of houses being built in the United Kingdom. House building peaked in the early 1970s at 350,000 houses per annum. In recent years, the number of completed homes varied between 105,740 in 2012 to 156,140 in 2015. The dramatic shortage of homes occurred as result of the decline social housing being built by government, restrictive planning permission and a concentration of large builders who are motivated to sit on land banks and see prices rise.

In 2002, one of the members of the Bank of England’s monetary policy committee, an economist named Kate Barker, conducted a housing market review. Her report concluded that 250,000 new homes should be built each year. Back in 2002, the net inward migration was 260,000 where as it peaked in at 336,000 in 2015. When new births and deaths are factored in, the net annual population growth is hovering around 500,000 per annum. It is easy to see the correlation between the house price growth and population growth.

The lack of available housing and the shift towards renting means that landlords can achieve good rental yields and capital uplift, if they buy in the right area.

With net inward migration of 313,000 to March 2020, demand for property is soaring. Combined with low interest rates, we think it is a great time to invest in UK property. Speak with a property expert to help identify the best opportunities today. Not all our properties are listed on our website.

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UK Property Hotspots


Invest in Property in Leeds

Leeds has had a relatively slow take-up of flexible office spaces up until recently. For the first half of 2019 only 7% of total office take-up was from flexible workspace operators. In Leeds, flexible office space only accounts for 3.8% of total office stock in the city, but by 2023 this is predicted to rise to 6.7%.

Not only is Leeds getting some better employment opportunities, it’s already a good place to live and work in its own right. It has a low unemployment rate of 4% and a quality of life score of 7.76 according to the Times.

In 2019 JLL selected Leeds as the top spot for house price and rental growth, predicting house prices to increase by 17.1% by 2023. Likewise, rental growth is also predicted to increase by 17.1%. We think the emergence of flexible office spaces will contribute to sustained property growth as people look for jobs in new companies.

One such opportunity is Riverside Mills, a buy to let in Leeds city centre. Prices start from £142,500 and there is a potential for up to 8% returns. Riverside Mills is in the South Bank Regeneration Area. The aim of the regeneration project – dubbed the largest in Europe – is to expand the city centre of Leeds to twice its original size and be the epicentre of upmarket restaurants, cafes and green spaces. Once completed it will be one of the most sought-after destinations in Leeds.


Newcastle

The amount of flexible office space in Newcastle has grown at some of the fastest rates in the UK. In 2017 the number of co-working spaces increased by over 12%. According to research by Paymentsense, the number of start-up businesses in the north east is growing at one of the fastest rates in the country. At the end of the 2017/18 financial year, there were 45,498 start-up businesses, an increase of 20.8% from the previous year. The growth in flexible office space is a response to accommodate the number of start up businesses. One example of a flexible office space in Newcastle is the Toffee Factory in Ouseburn. Just a twenty-minute walk from Newcastle’s city centre, Ouseburn houses the north east’s creatives and offers a plethora of hip bars, farm-to-table eateries and live music venues. The development of neighbourhoods such as this have encouraged young people to live and work in the north east city.

After graduation, over a third of Newcastle’s students stay to work in the city – the 9th highest rate of all UK cities according to Centre for Cities. It’s likely that the growth in flexible office space will bring about more diverse employment opportunities and encourage even more graduates to stay.

House prices in the north east are expected to rise by 17.5% by 2023, from a rather modest average of £204,769. Newcastle’s NE6 postcode was named by Benham and Reeves as being one of the best places to invest in the UK to achieve high levels of rental yields.


Invest in Property in Birmingham

Birmingham’s flexible workspace take-up exceeds that in many other UK cities. According to a study by Cushman &Wakefield almost 230,000 sq ft of space was let in the first half of 2019, representing 40% of total take-up. It’s an attractive city for flexible workers, and with areas such as Digbeth having been transformed into a centre for creatives, there is a huge appetite for this type of workspace. Birmingham’s ideal location means that other key regional cities are within a two-hour reach, which is convenient for those who work remotely but occasionally need to travel to different business sites. The regeneration it has experienced and the incoming HS2 rail project which will improve travel times between Birmingham and London has made the city attractive to businesses and residents alike. Over the past year, property prices in Birmingham have sky-rocketed by 5.8% to an average of £188,254 which is three times the national average, according to data from HM Land Registry.

A recent report has demonstrated a strong correlation between employment prospects and property prices. Birmingham has seen a 12% rise in employment and a 23% rise in house prices. As the amount of flexible workspace increases, it’s likely to continue positively affecting property prices and result in a city with a booming economy offering work in a variety of sectors. Thereby making Digbeth one of the best areas to invest in Birmingham

JQ Rise is a new buy to let property in Birmingham, overlooking the Jewellery Quarter. It is located in a desirable B1 postcode and one, two, and three-bedroom apartments are available for purchase. The apartments will be furnished with the developer’s signature style, combining modern, stylish fixtures with comfort to ensure a luxurious feel. Hardwood veneer flooring, stainless steel sockets and integral appliances will be featured throughout. One-bedroom apartments start from £199,995 and a 5% initial payment is required. Completion is due in Q2 2022, which will give investors time to raise capital.

Learn more about this new property development overlooking the Jewellery Quarter and how prices have the potential to increase, allowing for capital growth.

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Liverpool

Flexible offices in Liverpool have been growing at the fastest rate in the country. In 2018, co-working and serviced office space accounted for 10% of the market, with newcomers Clockwise and CityBase coming onto the Liverpool market. According to Instant’s Entrepreneurial Index, some of the highest demand from flexible office space has come from start-ups, particularly in Manchester and Liverpool.

Having struggled economically in the past, Liverpool still has a lower-than average property price of £124,700. This is already accounting for the 4.6% increase over the past year according to Zoopla. To us, this suggests that there is still plenty of scope for house price growth. With new businesses setting up in the city and an improving economy, we will continue to see demand for housing from young professionals providing good rental yields and levels of capital uplift.

At One Touch Property we offer various Liverpool buy to let investment opportunities to suit most budgets in pockets of the city experiencing vast amounts of regeneration.


Edinburgh

The boom in the technology sector in Edinburgh is in part attributed to its offering of flexible office space. Technology companies have taken up 34% of office space in the first three-quarters of 2019. The number of jobs in technology, media and telecommunications is set to increase by 21% over the next decade.

Edinburgh benefits from the highest graduate retention rates in the UK outside of London at 47%. Edinburgh’s graduate population stands at 50,000, with 57% of them considered ‘skilled’. The talent found in Edinburgh makes it an ideal city for growing technology companies. It’s no surprise people who study in Edinburgh want to stay there; in 2018 it was named in a study conducted by Arcadis as the best place to live in the world. Edinburgh boasts a low crime rate, good health of its workforce and high levels of education. As Edinburgh is a coveted place to live and work, it’s no surprise property prices are rising quickly. JLL has predicted that property prices in Edinburgh will increase by 16.5% by 2023 – ahead of Scotland’s national average of 11.5% and the UK’s overall expected increase of 11.4%.

53 George St is in Edinburgh's New Town, an area originally designed in 1767 to accommodate Edinburgh’s wealthy politicians and writers. Today, people visit to marvel at its elegant architecture, boutique stores and art galleries. 53 George St is a boutique development of 6 apartments with restored Georgian features. Studios start from £300,000.

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Best Places to Invest in UK Property in 2020 – An Overview

In conclusion, we feel that one of the biggest drivers in property price increase will be the boom in flexible working spaces. Towns and cities that offer flexible working spaces will prove to be some of the best places to invest in property in 2020. There has been a shift in the employment landscape in the UK. More people are going self-employed and with rising commercial real estate prices in cities such as London, businesses are looking to incorporate more flexible workspaces to save money and attract talent from other cities who are not looking to relocate. According to the Office for National Statistics, the number of people registering as self-employed has risen rapidly between 2001 and 2017 from 3.3 million people to 4.8 million. As per research from Knight Frank, 69% of global corporations plan to increase their use of co-working space over the next three years, and 44% believe co-working space will comprise a fifth of their workspace.


Flexible workspaces are moving to key cities outside of London

With the migration of flexible workspaces to key cities outside of London, it is estimated that this type of working could contribute over £12 billion to local economies over the next decade. The uncertainty of Brexit continues to shape Britain’s economy and allowing people to work from flexible locations could provide a boost to local economies. More often we are seeing businesses basing employees outside of London to explore more cost-effective areas. Not only do flexible workspaces contribute to the local economy, they also contribute to the local area in terms of Gross Value Added. Development Economics published a report that stated each co-working centre will generate £20 billion GVA each year by 2029, £12 billion of which will go to local economies. This has a direct influence on the career opportunities and earning potential of residents. If residents have access to employment opportunities and can earn well, it will affect the property market and housing demand will increase. Find out which of our current property developments will benefit most..

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According to research from the Resolution Foundation, fewer young people are moving for jobs than they were 20 years ago. In 1997 30,000 young people moved home to start a new job, compared with just 18,000 in 2017. This is due to several factors, including being restricted by moving costs and rents. If towns and cities want to attract new businesses and keep a young workforce, they need to provide more flexible workspaces.

The increase in this type of workspace will encourage new businesses to new cities, as we have seen and encourage graduates to stay in the city in which they graduated. A booming employment market that provides opportunities to young professionals will attract them, and in turn they will require housing. In the case of Birmingham, the 12% rise in employment translated into a 23% rise in house prices, as property becomes more in demand.

Some of the best areas to invest in such as Birmingham, Leeds, Liverpool and Newcastle already have modest average house prices. They are each seeing an emergence of creative and tech sectors, and areas such as the Baltic Triangle in Liverpool and Digbeth in Birmingham have really come into fruition. Co-working space in Leeds initially had a slow take-up but has since accelerated and its strong local economy combined with JLL rating it as the top place for house price and rental yield growth, makes it an ideal city to invest.

Edinburgh has slightly higher house prices, but already benefits from a highly skilled workforce and one of the highest rates for graduate retention. This highly skilled workforce has been identified and flexible office space is increasing, along with a booming tech sector. The emergence of new sectors gives graduates more employment options, in turn raising demand for property as they move from student accommodation to residential. This is also reflected in JLL’s prediction that prices will increase by 16.5% by 2023, above the national average.

Here at One Touch Property we build a property sourcing strategy to locate areas with highest growth fundamentals that can be applied to other areas. These are just a few places we think are the best places to buy in the UK. Sign up to our newsletter to receive more UK property market news and discover more up and coming property areas in the UK. Alternatively you speak with a property investment consultant about your investment and lifestyle goals.

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How to Invest in Property UK

How to Invest in UK Property

Before you even consider a property investment, you should read our ultimate guide on how to invest in property.

There are many ways you can access the property market. You don't need to buy a property outright yourself, as that will only be an option if you have significant capital in the bank for a deposit. There are other ways, you can also invest in a crowdfunding scheme or loan money through peer-to-peer lending. Sometimes you can invest as little as £100 in those schemes.

Each option is not without its own obstacles. We discuss the pros and cons of investing in property through a company vs. as an individual, crowdfunding and peer-to-peer lending. Click the arrow below to learn more about the different ways to invest in UK property...

How to invest in property

Before making an enquiry to a property, have you considered whether you want to buy a property or explore the other ways you can invest in property?

  1. Buying a Property
  2. Buy shares in a listed property company
  3. Buy shares in a REIT
  4. Crowdfunding
  5. Peer to Peer Lending

There are a number of ways to access the UK property market. We will briefly explain how to invest in UK property and outline some of the advantages and disadvantages of each:


Buying a property

There is an age old saying that an Englishman’s home is his castle. Meaning that a person has control of what happens in their own home. Many people prefer to buy the actual property, the brick and mortar (as some people say) for the sense of security that they feel from owning the legal title.

Having been active in the property industry for more than 11 years and working with a lot of overseas investors from Hong Kong, Middle East, South Africa, Israel and Russia, we are absolutely aware that investors don’t just buy property for the investment returns. They like the idea of having a foothold in another country and having something tangible, like property.

If you are looking to find out more about the UK property purchase process or the differences between the freehold and leasehold ownership, our property investments guides will help empower you with the knowledge you seek.

One can find suitable investment properties via online auctions, property portals, estate agents - like One Touch.


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Buying shares in a listed property company

The typical available on our website requires a minimum investment of £60,000. If you don’t have that sort of budget, then purchasing shares in a listed property company may be a the way to access the property market with less capital. The London Stock Exchange has over 50 listed property companies and REITS. Just like when choosing a property, you would have to conduct your due diligence on the sector and the specific company.

It is easy to get it wrong, as there are lots of changes that can take place. For instance, a change in trends has resulted in a significant downturn in the fortunes of retail investment companies. Shopping centre owner, INTU has gone into administration. If you owned shares in that company you would probably have lost all your capital. Whereas - when you own a buy to let property - even if the market demand goes down, you still receive the rental income and with all-time low interest rates, you will certainly be able to maintain the mortgage payments. Buying shares in property companies which focus on healthcare have been more resilient. One such company is Primary Healthcare Properties (PHP). It pays a dividend of nearly 4% from leasing doctors surgeries to the government.

UK investors buy shares via online investment platforms like AJ Bell or Hargreaves Lansdown can benefit from tax savings when they invest through their ISA or SIPP. Overseas investors can also set up International Trading Accounts but some of the overseas platforms only have a limited selection of shares to invest in.


Buying shares in REIT

A REIT is an abbreviation of Real Estate Investment Trust. Shares can be purchased.


More Risky Property Investment Options Include:


Crowdfunding

Generally you would provide equity towards a development for a share in the profits. The risk profile makes it only suitable for sophisticated or high net worth investors. The higher risk means you could also achieve higher returns; if the developments works out as expected you could achieve between 11% and 18% returns. However, you could also potentially lose all your capital invested because you would sit behind the creditors if the developer went bust.


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Peer-to-peer lending

Is slightly less risky than crowdfunding in most instances because provide the loan to a developer and take a first charge on the property. That way, they have access to the assets in the underlying property. With the lower risks come returns between 4% and 6% per annum.

You can invest as little as £100 into Peer-to-peer lending platforms. With peer-to-peer lending, you would earn interest on the loan and the capital is repaid upon completion of their project.

The main difference between crowdfunding and peer-to-peer lending is that with crowdfunding you own the equity (the property), and with peer-to-peer lending you are loaning money, so you own the debt.


Conclusion

Property is a non-liquid asset and during tough times you may not be able to sell your shares or you property. However, there is a good steady income on offer and some capital growth opportunities that will provide handsome returns for medium to long term investors.

Do you like the sound of the traditional route and the simplicity of – the bricks and mortar? This is where One Touch can help you with your property search. Helping to find the best property to match your investment and lifestyle goals.

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Tips for Investing in UK Property

Tips for Investing in UK Property

Before investing in UK property any person should conduct research into the property market which could help them achieve their goals and avoid costly mistakes. You need to have a general idea of the different property sectors and how they work, a knowledge of property investment terminology and financing that would be available to you.

Before you start, here are some tips if you are considering property as an investment...

Top Property Investment Tips

If you are wondering how to invest in property, here are some things to consider.

  1. Be open to ideas
  2. Deciding what is most important to you
  3. How much time you have
  4. Understanding the Risks
  5. Choosing the type of property to invest in
  6. Your exit plan
  7. Talk to property investment experts

Be open to ideas

As a property investment consultancy we aim to help people discover more about property investing. It may feel quite daunting at first: not know exactly what you are looking for. That’s fine, everyone has to start somewhere. Through conversation potential investors, like you, gather information from property experts. The best approach is to be open to new ideas. There are a variety of ways to invest in property. It starts with a conversation!


Deciding what is most important to you

Everyone has different goals. Some people want to start building a buy-to-let property portfolio as fast as they can. One of the quickest wasy to grow your portflio is to take on bank finance (which some poeple call leverage) that way you can make limited funds stretch as far as possible. These types investors will be focused on capital growth or enhancing the value through property refurbishment.

Others may be wondering what high yield property investments across the UK that provide them with a steady income and the best rental returns.

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How much time you have

Ultimately, the path and chosen course of action depends on the amount of time that you have available. If one has the time and inclination to fully manage their property portfolio, more profits can be retained. Instead of paying a developer market prices, investors could try source below market value properties in the local area and manage it.

If you a complete newbie to property, you would probably would have to go on number of property training courses to improve your knowledge before trying to do everything on your own.

Even with the best training, people will make mistakes. We all do.

Where One Touch Investment fits is the property market is by providing property investment opportunities from well-researched property sectors which display good capital growth prospects and solid rental returns. We are not financial advisors; we provide you with free investment property due diligence checklist and guides so that you can make better investment choices.


Understanding the Risks

Every investment has a risk and associated reward. It is a balancing act; often the higher the potential return, the higher the risk that is accompanied to it. The final choice depends on what you are comfortable with.


Choosing the type of property to invest in

It is clear that a tenanted property with a proven income has less risk than an off-plan development. It is about how the risks are mitigated or if you are prepared to accept the risk for a higher return.

One touch provides an introduction of the types of properties to invest in. The summary of the pros and cons of each property sector are a starting point for your property journey. More detailed tips can be found in our property investment guides and videos to help you decide upon the specific property sector which is most appealing.

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Your exit plan

Some people call it an exit strategy. Before you start investing in UK property, you have to remember that property is a fairly illiquid asset. In simple terms, that means that property cannot be sold quickly. Most property experts recommend keeping property as a medium term investment and holding it a minimum of five years.

One has to be mindful that house prices can go up and down. If the rental demand in a certain area or sector changes, the reduced demand could mean that the rental returns could be lower than what one paid for the property. If one has to sell quickly - when the economy is unstable you may also achieve a lower sales price. It is always worth having a bit of extra saving so that you don’t need to sell in a rush.


Talk to property investment experts

One Touch Investment has been trading for more than 11 years. We have track record across below market value, property sourcing, student accommodation investment and care homes. Our consultants own their own buy-to-let properties and are experienced investors.

For sure, we have made mistakes, like everyone. We will share our experiences to help you make better property investment choices. The property opportunities that we are offering on our website represent the selection of what we consider are the most solid property sectors at the moment.

When you speak with our expert team you will find that we have a consultative approach based around your desired investment and lifestyle goals.

We do not offer property training courses. There are a lot of people making substantial amounts positioning themselves as property mentors. Why spend £20,000 on training courses when you could learn while investing? Start your property search or get in have a free consultation with one of our investment experts to help you formulate a plan.

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Properties to invest in

Properties to invest in

The best properties to invest in are the ones that match your lifestyle and financial goals.

Buy to let is the most well-known form of residential property investment. As the name suggests, you buy a property which is rented to tenant on a short term lettings agreement. The market rent is determined by supply and demand and no rental assurances are in place. The advantage is that in areas of high demand, rental yields can go up. Albeit that the typical yields are lower than commercial property, there is more scope for potential capital gain because the properties can also be sold on to owner occupiers.

Commercial properties usually have a lease with an operator who conducts their business from your premises. The bite sized commercial property investments we make available usually fall under the stamp duty threshold. They are cash investments with a high yields. The net income and period is defined within the agreement and generally lasts between five to twenty five years.

Click the green arrow and read more about the dynamics of each sector to help you decide which properties to invest in =>

UK Property Sector Markets

There are many different sectors within the UK proprty market. Two of the main sectors are the residential and commercial property market. Each come with their own benefits and drawbacks, as we explain below.

The Pros and Cons of the Residential Property Market

  1. The Residential Property Investment Market
  2. The benefits of investing in residential property
  3. The downsides of investing in residential property

The Pros and Cons of the Commercial Property Market

  1. The Commercial Property Market
  2. The benefits of investing in commercial property
  3. The downsides of investing in commercial property

The property sector should be one of the first things you think about, before you even consider location and budget. Those aspects will come later once you understand the fundamentals of the property sector you have chosen to invest in. Before deciding on property sector, you will firstly need to define what goals you want to achieve with your investment. Are you looking for capital growth or rental return? You may want to familiarise yourself with those terms first, we wrote a post explaining what capital growth and rental yields are.


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The Residential Property Investment Market

When considering property sectors as an individual, you can broadly define them into two groups. The first is the residential sector. The residential sector includes your traditional buy to let. Whether it be an old “doer-upper” type house that you purchase for below market value in the hope that once refurbished you will be able to turn over for a profit, or a new build in an area you think will see plenty of regeneration. Both types of properties are residential buy to lets. Of course, the properties can be purchased for different purposes. With an older property that needs work, you might need to be more hands-on with regards to organising repairs. You would also need a sound knowledge of the market and how much the property could potentially sell for once it is brought up to the standard of comparable properties in the area. These properties could be turned around in a matter of months for a healthy profit if you have done your research right. However, when the market sentiment is cautious you may have to hold onto the property for the medium term so it will be important to ensure that the rental income covers your finance costs.

Several investors have chosen the simple method or purchasing new build apartments “off-plan” in an area experiencing regeneration. If you don’t want to experience any development risk, some completed units are available but without the discounts that off -plan purchaser manage to secure.

These properties will come key-ready with furniture packs and are generally tenanted by young professionals. These could be held onto in the longer term until the area realises its potential and property prices increase. To achieve good levels of capital growth, investors should generally hold onto property for a longer amount of time.

It’s worth noting that unless you are buying a house to renovate, people usually invest in the residential property market to achieve long-term capital growth. This means that fundamentals such as regeneration, transport links, proximity to commercial and business centres and property trends are key indicators of future growth prospects.

The buy to let properties that we offer our investors have a starting purchase price in the region of £200,000. When buying property off-plan, one would typically pay a 30% deposit and the balance by way of mortgage upon completion.

Overseas investors would generally find it a bit more challenging to obtain a mortgage and the interest rate would be higher that UK residents may enjoy. However, interest only mortgages are available which is not customary in other countries. For more information read our buy to let mortgage guide.

In general, the rental income covers the mortgage and running costs. Property professionals sometimes say “It washes it own face”. Your gains are made from capital growth. Places like Manchester achieved 35% growth since 2015 due to the regeneration of Manchester.

In the UK, property prices have been increasing steadily since the 1990s. The 2010s saw average property price growth of 33% alone according to figures from Nationwide. Prices are buoyed by demand and as there is a lack of housebuilding and a change of household dynamic, we cannot see demand being met any time soon.


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The benefits of investing in residential property are:

- Higher capital growth can be achieved - Relatively stable – property prices in the UK are always increasing - Investors who purchase off-plan will have time to raise the capital needed either through a buy to let mortgage or by following the developer payment plan

The downsides of investing in residential property:

- Lower rental yields - Stamp duty and no mortgage interest tax relief makes it increasingly difficult to make a profit - Investors may have to be more hands-on with their property in terms of sorting out maintenance and tenancy issues

If you leaning towards residential buy to let property investment, you can explore the To find out more, we recommend you download our buy to let fundamentals guide to help you decide whether it is right for you.


The Commercial Property Market

The second property sector we will be talking about is commercial property. Commercial property is defined as buildings or land used to generate a profit, either from rental yields or capital growth. This is as opposed to residential units that are used primarily as individual residences.

Commercial property does not solely include offices and retail spaces. It can also extend to healthcare centres, hotels, and student property. In fact, these tend to be the three types of commercial property that individuals invest in and that we offer here at One Touch Property.

If you are looking to achieve high rental yields as opposed to capital growth and only want to own the property for a couple of years before selling it on, you should be considering commercial property. With these types of investment, area demographics are important to consider. Recent data shows that the universities with better rankings and job placement prospects continued to attract higher volumes of students and greater proportion of overseas students, whereas lower ranked universities such as Bradford had lower numbers and reduced occupancy levels across the student properties. Where many students remain at the family home for example. Similarly, if you invest in a care home, you will not choose an busy inner-city location with a low proportion of elderly residents. Although they would be found close to town centre, the preference would be for market towns and coastal villages.


The benefits of investing in commercial property

  1. Higher rental yields achievable
  2. Lower entry point
  3. Management company in place – hands-off investment

The downsides of investing in commercial property

  1. More volatile – could be subject to market trends and demand
  2. No mortgage availability – investors must have the full cash amount
  3. Limited scope for capital growth
  4. Operator risk – choosing a tenant for a long term commercial leases

If you are attracted by high yields and only want to own property for a short time, a commercial investment may be more for you. To find out more about retirement property, read our analysis on what makes a good retirement property investment. Similarly, if you want to find out more about the student property market, read our fundamentals of the student property market report.

As you can see, there are pros and cons of each property investment sector. The suitability depends on your individual circumstances and financial goals. It may be worth exploring the options in more detail and having a strategy meeting with an experienced member of the One Touch team.

UK Property Investment News

Care Home Investments

Student Property Investments

Fundamentals of UK student property market 2020

When deciding to invest in student property, there are lots of things to consider. What are some of the core fundamentals you should take into account before investing? Do you know the long term...

Buy-to-let Property Investments

Property Investment Guidance

One Touch property consultants

One Touch property consultants are an experienced team who will share their expert knowledge to help you take an investment decision with confidence and ease

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