TK Maxx’s success in Watford serves as a catalyst for investing in new build residential apartments, particularly on Sydney Road, offering a compelling investment opportunity
Rachel Reeves, the UK’s newly appointed Chancellor of the Exchequer (Finance Minister), revealed plans to build 1.5 million homes in the next five years. To hit this continued and ongoing target, the government still needs to build 300,000 homes a year. This continues to present itself as an opportunity for property investors.
A reporter asked Ms Reeves about Labour’s ambitious housing targets, pointing out it hasn’t been seen in the UK since the 1950s. As illustrated in the following chart, the government struggled to meet annual housing targets for the past 20 years, leading to a persistent shortage in housing supply and highlighting ongoing opportunities in a market where demand consistently outpaces available housing. This has led to significant opportunities for investors who have benefited from investing in U.K. property in the last two decades.
According to the U.K. Government’s Office of National Statistics, by the end of 2023, a total of 212,570 homes were completed last year under the Conservative administration. This an indicator of the sustained trend of the government not being able to reach their yearly house building target of 300,000 homes.
Ms Reeves said: “We can’t build overnight, but that’s why we have set out today the initial steps that we are going to take to unlock private sector investments to build those homes.”
She also confirmed that Deputy Prime Minister Angela Rayner will write to local councils and planning authorities to review green belt boundaries to meet housing targets. Although the government has set out its new policies, just like previous governments, in reality, they have not fulfilled what they have set out to in the past. As a result, this has benefited the smart investor who has taken advantage of the government’s lack of action. Investors have managed to enjoy lucrative property investments over the long term in the private rental market, due to the sustained lack of housing from previous government initiatives.
As well as the return of mandatory targets, the government has also announced changes to planning policy which will include a new priority to energy projects and changes to the ways ministers use powers for direct intervention.
In the eyes of a seasoned investor, based on the chart above and given the previous history of the U.K. government, ambitious plans of national planning reform sound great in theory, but the reality has always remained, the lack of new housing construction and a deficit of houses compared to demand. As a result, U.K. property investment continues to be a great choice due to the continued trend over a long time period where there is a lack of supply and increasing demand for housing.
Given these historical trends, the newly elected government’s visionary target of building 1.5 million homes over the next 5 years indicates another ambitious dream towards addressing the housing shortage.
Nathan Emerson, chief executive officer of Propertymark says more detail is needed on how the plans will work in practice.” He said: “Fine details about reform to the National Policy Planning Framework must be mapped out and open to full stakeholder scrutiny. It’s crucial there is transparency on how they intend to meet their ambitious target of building 1.5 million new homes by the end of its term in government, which in reality would mean having a large housing estate built every day before the next general election.”
It is clear that the ambitious plans are still just that: plans. As the new policies and strategies to accelerate construction and decrease the housing shortage are still unclear, this continues to illustrate the ongoing trend that there is a great market opportunity for U.K. property investment.
Even though there is now a new U.K. government that has set out to continue to reach their government housebuilding target, the past has already shown that even with new initiatives and policies the government cannot hit their continued yearly target. Coupled with the ambiguous plans of national reform policies there is no clear sight of meeting the U.K.’s housing shortage. This continues to benefit Buy-to-Let property investors who are taking advantage of investing in U.K. rental properties. As this trend continues more property investment opportunities continue to emerge. A strategic positioning within this market will lead to winning returns in an environment that is still ripe for opportunities.
If you’re looking for income-generating Buy-to-Let properties, it’s important to stay updated about the latest trends and opportunities. At Value Invest, we offer you fully oriented property investment opportunities across the U.K.
Reach out to the experts at Value Invest Group, who can help you navigate current market conditions. We have exclusive access to income-generating properties and early investor incentives, making investing in property simple for investors based in the UK or overseas.
Contact Value Invest today to arrange a 1:1 call.
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© 2024 VALUE INVEST
ALL RIGHTS RESERVED
