UK Second-Home Investments on the Rise
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Where Are People Considering Buying Second Homes Across the Globe?
Comparison site GetAgent conducted a new study revealing the most sought-after locations for purchasing a second property.
Not only does this shed light on the locations where people may want to live, but it also reflects the potential investment strategies of overseas property investors.
Let’s look at the study in more detail.
Discover More: Learn more about buy-to-let property investments with our guide on up-and-coming buy-to-let areas.
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Where Are the Most Popular Places to Purchase a Second Property?
Global searches for second-home acquisitions peaked in the summer of 2020. However, since the pandemic, there has been a notable increase in people buying a second property, domestically or abroad.
Motivations for acquiring a second home vary, from seeking a sound real estate investment to having a retreat for family gatherings or personal relaxation.
Property experts analysed global search data for terms like ‘second home in [location]’ and ‘holiday home in [location]’ to identify the top destinations for second homes. The study highlights countries like Ireland, New Zealand, and the UK as emerging hotspots for second home purchases in 2024.
In the UK alone, the study found over 55,000 individuals worldwide actively searching for second homes within the country over the past year.
European countries dominate the top 10 list, with the likes of Spain, Portugal and Greece also catching the eye of potential buyers.
Find Out More: What exactly is a buy-to-let? Read our guide to find out more about this type of investment. Alternatively, check out our articles on long-term investment and the best thing to invest in right now for more insights.
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Why Invest in the UK as an Overseas Investor?
One of the more interesting aspects of this GetAgent poll is that the UK sits so highly in the eyes of people looking to purchase property across the globe.
However, looking closely, you can see that the UK property market offers numerous benefits to potential buyers. For instance, if you’re a buy-to-let investor from overseas, you may be attracted to specific areas in the UK due to their good-value house prices and alluring rental yields.
The UK House Price Index reports that, as of January 2024, the average property price in the UK stands at £281,913, showing a 0.5% increase compared to the previous month.
The UK property market has historically remained resilient despite economic uncertainty. Despite the ongoing COVID-19 pandemic, average prices surged by 10% in 2021, marking the highest growth in years.
Demand for residential properties stays strong in 2024, fuelled by a housing shortage, reasonable affordability, and a preference for larger homes due to the rise in remote work.
However, regional performance varies. Cities like Liverpool and Manchester continue to experience steady demand growth, while other areas may see stagnation or slight declines.
As of February 2024, the latest HomeLet Rental Index indicates that the average monthly rent in the UK stands at £1,262 PCM. Considering the average property price, this results in an average gross yield of 5.37%. However, certain regions in cities like Liverpool boast yields as high as 7.57%.
For more information on the UK property, see some of our buy-to-let area guides:
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