Property investment is known to be an investment that will consistently achieve solid returns. In the past decade, the average price of flats in the UK has risen by 60%. The Halifax House Price Index illustrates that the price of a flat has increased dramatically since 2005 from £87,550 to £233,424. Further to this, it is interesting to note that, over the same period, the value of a terraced house rose 41%, a semi-detached 32%, a bungalow 20% and a detached house 21% – thus strengthening the evidence that property is a prosperous investment choice whatever the property type.
Why are flats reaping higher returns?
Research undertaken by Halifax stated that the impressive rise in the value of flats is due to London’s thriving flat market – as demand increases, so does the price. London’s flat market boosted the overall England and Wales sales figures as the capital makes up half of the entire flat sales in the country. Flats are attractive for many reasons. For first-time buyers, flats may suit their budget, given that the sheer price increase of houses throughout the county has simply made it impossible for most young people to purchase a house as salaries are not matching the price hike. On the other hand, practically they may suit the needs of a single person. Further to this, as there is a property shortage, flats enable houses to be split into further accommodation for more people, therefore fulfilling the needs of more individuals.
The North – South divide
There is, of course, the North – South divide between property prices in England and Wales. Renewed evidence of this has been demonstrated in the Land Registry figures which recently unveiled three areas that saw house prices rise by less than 1% in the year to them end of August, namely the North East of England, the North West and Wales. In contrast to this, property prices in the East of England increased by 8.4% and 7.6% in the South East.
Investing in property, without the additional costs of buying a property
Buying a property is a great investment in the current property climate, as profitable returns are being achieved. That’s what makes Wellesley’s model all the more unique. We are an asset backed Peer-to-Peer lending platform that specialises predominately, but not exclusively, in property lending. We lend only to experienced, creditworthy, carefully selected borrowers who provide tangible assets as security over their loan. Our model works by offering borrowers finance and investors the opportunity to invest in secured property development loans with a GDV of up to 75% and offering those investors a rate of return of up to 6.32% pa.
We offer investors the chance to invest in British property which will help get Britain building again. If you would like solid returns through solid investments, please call our London-based Customer Service Team on 0800 888 6001, alternatively e-mail [email protected].