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Top 3 UK investment strategies for real estate investment in 2021

Property investment is a personal affair – the strategy that one might pick depends on multiple factors, from risk aversion to funds available. If you’re thinking of investing in real estate in the UK in 2021, you will probably do own research* – we strongly encourage so- however, to help you out,  we have picked 3 strategies that we have set our bets on for this year.  

We have so much certainty in these – and the data to back it – that we have built 3 unique tools to help you get started. Explore our signature AI-based Refurbishment ReportSustainability Report and AI Valuations.  If you’re interested in finding out more, just ping us on the chatbot – and explore more in the post below.

High Yielding Properties

2020 lifestyle change has shaped the real estate landscape in a huge way. With office employees working remotely, locations traditionally viewed as “too far” were suddenly in demand. Average yield in the UK currently averages 5.2% (as reported by Zoopla), with highest yields seen in Scotland and Northern England. However, London and outer London continues to offer fantastic opportunities: properties in Barking, Dagenham, Newham and Havering could land an investor a solid 5% yield this year. 

For numbers-oriented investors, we recommend using houzen’s AI valuation tool, which scans listing photos, data and historical sale prices in the area, and provides the most accurate price prediction in the market. Visit the valuation tool here

 

Sustainable Homes

Over 20% of UK’s carbon emissions originate from domestic buildings – and investors and owners become more and more aware of the impact homes have on the environment.  With the government offering various schemes supporting responsible homes, and tenants stating that sustainable improvements play an important role in accommodation choice, sustainable homes are here to stay. 

Solar panels, ground source heating and batteries and other sustainable tech solutions are starting to reach production economies of scale and become economically viable, leading to the emergence of exciting new possibilities.

With an ever-growing public desire to be living in a sustainable home, property investors need to be aware that properties with good eco-credentials are likely to attract higher interest from tenants and house hunters. The market is starting to see a long-overdue increase in the number of eco-friendly homes, driven by developers who are putting emphasis on sustainability in response to the government’s Future Home Standard.

If sustainable improvements in a new investment are important to you, our Sustainable Reports will help you and keep the costs under control. 

Refurb & Flipping

In 2020, the proportion of homes in England and Wales that have been bought, renovated and sold again within a short period has hit a 12-year high, with Burnley in Lancashire topping the list of properties most commonly “flipped”.

So far this year, one in every 40 homes sold were bought and sold within 12 months, according to research from estate agent Hamptons International using Land Registry data, the most since 2008. In Burnley, it was about one in 12.

Flipping is an exciting (yet risky) strategy, but what if you could get started on your first refurbished investment with a help of Artificial Intelligence? 

We have spoken to over 100 UK residential investors and it became clear that flipping is the most time and resource-consuming strategy. We decided to fix it, by involving AI and our experts. The result? You can now request a Refurbishment Report on houzen. As the first stage, AI scans all the photos of the property and marks them as “good” “premium” or “needs fixing”. Then our analysts view full listings together with the AI report and produce and action-based list of improvements with largest impact on the property price. It comes with checklist of costs and contacts to our trusted contractors.  Sounds interesting? Give it a go.

*Our publications do not offer investment advice and nothing in them should be construed as investment advice.  Our publications provide information and education for investors who can make their investment decisions without advice.

The information contained in our publications is not, and should not be read as, an offer or recommendation to buy or sell or a solicitation of an offer or recommendation to buy or sell any securities.  Our publications are not, and should not be seen as a recommendation to use any particular investment strategy. You should carry out your own independent research before making any investment decision.

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