Britain’s housing shortage combined with the country’s strong economic growth has made it the fourth best place in the world if you are looking to park cash in residential property.
The UK housing market, which has seen prices climb by 20 per cent over the past five years, was ranked behind only the US, United Arab Emirates and Singapore as the best place to make a return on rents and increasing property values.
Estate agent Savills, which conducted the research, said its results were based on economic performance and growth prospects alongside population growth.
“When a growing population, growing affluence and limited housing or land supply converge, we would anticipate real house price growth,” said Yolande Barnes, director of Savills world research.
The UK can expect more house price growth unless the government makes changes to housing policy, separate research released by Property Week and Grainger said today.
Experts, including former housing ministers, said central targets would help to bypass local concerns. Better funding for local planners would also speed things up, they said.
“The crucial thing is getting the planning system to deliver more permissions. I believe planning departments should have a centrally mandated obligation to deliver a certain number of housing permissions,” said Bill Hughes, head of real assets at Legal and General Investment Management.