With its historic monuments, green and rolling landscapes, picture-postcard villages and bustling, cosmopolitan cities, the UK has much to offer the overseas investor keen to purchase a holiday home, city crash pad or investment property.

Low interest rates, a strong currency, low crime figures and stable property prices have all helped to keep the UK real estate market relatively insulated from the more volatile market swings seen elsewhere in Europe and America.

Although property prices did dip somewhat in the wake of the 2008 global recession, creating something of a buyers’ market for cash-rich investors, changes to lending policies by mortgage lenders have prevented many potential first-time buyers from getting onto the property ladder, all of which has helped to boost rental income earning prospects for city-based landlords.

The UK government has also made it clear that due to a growing population, there is still a housing shortage in key areas of the country, especially around the south east of England where the lion’s share of the country’s jobs and wealth is concentrated. This is excellent news for building contractors and property developers keen to make a profit from canny land purchases in the past and future residential developments.

With nearly 1.7 million students due to begin higher education courses during the 2011-12 academic year, the student accommodation sector is also showing signs of above-average performance trends, making it an excellent option for buy-to-let investors. This is especially true in popular university towns such as Birmingham, Manchester, Liverpool and London – all of which boast two or more local higher education institutions.

The 2012 Olympic Games, due to take place in London, has also helped to boost rental income potential and property prices in the capital, thanks to infrastructure upgrades and urban regeneration programmes.

Properties for sale in the United Kingdom vary, from modern studio city-centre apartments and swanky riverside penthouses in cities like Manchester, London and Liverpool, to modest terraced and semi-detached family homes in the suburbs, and palatial mansions in the outlying suburbs of affluent areas such as Cheshire in Greater Manchester, Richmond and Hampstead in north and west London, and stately country piles in rural counties such as Oxfordshire, Wiltshire and Buckinghamshire. As the population continues to age, so demand for sheltered housing and one storey homes is also likely to increase – another area worth watching by real estate investors.

Generally-speaking, the further north you go, the lower the property prices, although there are pockets where inflation does occur due to high demand and affluent residents.

Buying property in the UK offers overseas investors the chance to enjoy good long term capital growth as well as excellent short-term rental investments, provided they have access to funds and get good advice from professionals in the know about where and what to buy. 

Regions: Birmingham | Bolton | Bradford | London | Manchester | Scotland