Research conducted by high-end estate agency Savills has revealed that Britain’s dearth of housing supply and its growing economy have helped to make it the fourth best place in the world for residential property investors.
With prices rising by 20% over the past five years, the UK housing market was ranked only behind the US, United Arab Emirates and Singapore as the best location to make a return on rents.
Savills said its findings were based on economic performance and growth prospects, in conjunction with population growth.
Yolande Barnes, director of Savills world research, commented: “When a growing population, growing affluence and limited housing or land supply converge, we would anticipate real house price growth.”
Other research carried out by Property Week and Grainger said the UK will experience more house price growth unless the government make significant changes to housing policy and tackle the current shortage in supply.
Better funding for local planners would speed things up, as would central targets bypassing local concerns, experts believe.
“The crucial thing is getting the planning system to deliver more permissions,” Bill Hughes, head of real assets at Legal and General Investment Management, said.
“I believe planning departments should have a centrally mandated obligation to deliver a certain number of housing permissions.”