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Investments in real estate in England

Investments in real estate have been the main pillar for preserving and increasing capital for many years. The main aspect of creating a successful investment portfolio has always been and will be the right choice of an expert company to build an investment strategy.

Team of the company - expert VelesClub Int. has been successfully growing and occupying a leading position in the field of international real estate since 2015; by the end of 2023, our company’s services already cover more than 20 countries around the world.

The economy of England today, we understand it together with an expert:

Economic growth in England remains subdued due to high inflation, but still maintains positive dynamics. According to the report of the UK Finance Minister Jeremy Hunt, the country's GDP growth is: 2022 - 0.6%, 2023 - 0.7%, projected in 2027 - 2%. Data confirmed by the UK Office for Budget Responsibility.

The International Monetary Fund has improved its forecast and no longer expects the UK economy to fall into recession. The IMF warned that growth prospects for England "remain subdued" due to persistently high inflation, but positive trends remain from rising wages, supportive fiscal policy and easing global pressures on energy prices and the global supply chain.

Real estate in England, main trends in market development:

Property prices in England are rising from year to year, but not at a catastrophic rate. Faster house price growth in London and the country as a whole is being held back by high mortgage rates.

Let's look at the statistics:

“In December 2021, the Bank of England base interest rate was 0.1%, over the next 2 years it rose to 4.5% and a further rate increase to 5% is expected in the near future. Parliament is trying to keep the country's inflation rate at 2% instead of the real 10%, but in vain. This fact had a negative impact on the demand for real estate in England in 2023, increased the burden on servicing mortgage loans and their payback period, so lower interest rates cannot yet be expected. According to Nationwide, the number of approved loans for the purchase of real estate in February 2023 is 40% less than last year. Developers continue to announce new projects without significantly slowing down the rate of release of “new luxury space” into the world; demand remains (the decrease in requests for the purchase of housing in the country in 2023 was only 1.4%), so a shortage of truly worthwhile offers is beginning to create. According to the analytical unit of the leading expert in the international real estate market VelesClub Int. the average cost of housing in London at the beginning of 2024 is about 500,000 pounds,” cites statistics from the Head of Analytics and Investment Block at VelesClub Int. Ksenia Shamitko.

It is worth noting that the demand for real estate in the Business Center of the World continues and will continue despite rising prices and high mortgage rates. Since 2015, the prudent Bank of England has obligated each borrower to independently prove to the lender his financial ability to service a loan at a rate of up to 7% per annum, regardless of the rate specified in the mortgage agreement. I would like to note that the influx of foreign capital into the country also remains at a high level, which has a positive impact on the economy as a whole.

Prices for secondary real estate are also slightly adjusted by sellers (no more than 5%), as you already understand, this fact correlates with the preservation of demand, especially for real estate in the capital of England - London. The most prestigious areas of the capital remain Kensington and Chelsea, followed by Westminster, Carmen and Richmond.

In the secondary market, it is worth paying attention to properties with high lending rates; investors redistribute the contents of investment portfolios and sell former rental properties at a lower price than the market. Don’t forget to conduct a comprehensive check of the “purity” of the transaction!!! With a systematic and expert approach to this type of transaction, the buyer can save up to 15% of the cost of housing, so be sure to enlist the support of companies that are experts in the real estate and investment market when preparing and conducting real estate transactions in England.

“You are definitely a winner, if you have “real money” in the moment, you can actively bargain with sellers and reach a deal with the most favorable rate. Don’t forget to enlist the support of leading companies in the global real estate and investment markets for advice and transaction support to increase capital.” – summarizes the General Managing Partner of VelesClub Int. Sergey Tumanov.

Any real estate investment requires evaluation and balance, and complete trust in market experts. A team of experienced managers at VelesClub Int. I am always ready to answer all your questions and accompany you at all stages of the transaction and subsequent reinvestment and diversification of your investment portfolio.