Factors Behind the High Demand for UK Property Investment
Demand speaks a lot of a UK property investment. In economics, it refers to the level of desire or need that exists for particular goods or services. Simply put, it can define an asset’s value in the market.
In the United Kingdom, the demand for such investments has continuously been at a high level due to a number of factors. In school we have been taught that low supply and high demand will yield higher prices. We all know that despite buildings being continuously constructed, land area remains the same thus suggesting limitations in supply.
It is for the above reason that many investors have sought to take their piece of the pie knowing that this spells a good return and positive profits. But what are these factors? What are the reasons behind the high demand for UK property investment? Surely, we’re all curious. Read more to discover.
As of 2016, statistics report that the UK has reached over 65 million in population. That alone tells us that more and more people have come to reside and live in the country. And we all know that a strong number of citizens and residents will call for a demand in the housing industry. Their varying needs will also call for the rise of businesses which in turn will create added demand for commercial and industrial assets.
Considered to be a home to many of the world’s biggest attractions ranging from historical sites, museums, amusement parks, entertainment and many more, the UK is one of the largest tourism industries in the world with18.6 million foreign visitors and 12.9 million domestic visits.
Adding to the demand are students not only from the country but from all over the globe. It is home to a number of renowned educational institutions such as the University of Oxford, University of Cambridge, University College London, Imperial College London, King’s College London, University of Edinburgh, University of Manchester and London School of Economics and Political Science which all form part of the world’s top 100 universities.
Last but definitely not the least; UK property investment is high in demand because of business. It is a thriving potluck of domestic and international companies of varying industries and sizes. This creates demand not only for commercial assets but also for residential ones as it pulls the employment bar higher eventually increasing the number of immigrants and foreign workers.