Simon Morris has learned this week that a new report has provided a positive outlook for the residential property sector, despite heading into an election year.
Relying on Data for Effective Property Investment
An independent property consultant, who provides advice to UK property investment funds on how to generate profit from their property portfolios, Simon Morris believes that effective property investment relies on the use of data.
Only through analysing data from various industry reports, can a UK property investment fund decide how to hone their investment strategy. That is why Simon found it fascinating, when a new report suggested a positive outlook for residential property in 2015.
According to Cambridge Network, Bidwells released their latest report, titled “Building Trends,” at a Cambridge-based breakfast seminar to 50 business community attendees. It pointed to several factors to suggest the UK residential market will continue to grow.
The IMF prediction that the UK economy will expand faster than any other G7 country in 2015, the rise in confidence in the property sector (evidenced by the rise of in-flows to property investment) and improving homeowner access to finance were all cited as reasons. It also went on to suggest that the economically destabilising effects of next May’s general election have been overstated.
The Emerging Problem; Residential Planning
The report strove, however, to note that it isn’t all plain sailing for the UK residential property sector. Namely; residential planning is an issue. The report showed that despite the fact that from 2012, housing completions have risen 52%, and residential construction by 22%, there’s still a long way to go.
Bidwells’ head of planning, Mike Derbyshire, expanded on the point: “We need to look at a number of strategies to solve our housing shortfall including ‘locally-led’ garden cities, the importance of the private rented sector in provision of homes and the release of brownfield land for development. All of these need to work together to bring us nearer to the annual requirement of 250,000 new homes needed each year to meet demand.”
Caution Must be Advised
In Simon Morris’ opinion, the report makes a valid point. All the evidence does seem to suggest that the time is ripe in 2015 for UK property investment funds to invest in residential property. Yet the sector is not without its issues, therefore to effectively invest in it, as Simon Morris explained when detailing how to wisely invest in London property, caution must be advised.