Why Invest in UK Property?
Recent History
Between 1900 and 1998 the housing stock of Great Britain has increased from about 7 million to 22 million permanent dwellings. (Housing Finance Review, 1999/2000) During that time the population of Britain has risen from 38 million to 59 million. So while the population has grown by 35%, the number of houses has increased by 68%. However, there are still not enough houses in Britain to satisfy people's demands.
Over the years people's housing expectations have changed. At the beginning of the 20th century a mere 10% of people owned their homes. By the end of the century almost 70% of Britons were homeowners. So despite a huge increase in housing stock, the increase in demand has been even greater.
What's Happening Now?
This century has seen a period of strong growth in the UK housing market. Now, as in the past, the basic factors of demand and supply are very favourable to property investors in this country.
According to the RICS, 200,000 - 250,000 households are forming annually in the UK. With only 185,000 dwellings being added to the housing stock annually. That is good news for property investors. Such inequality between demand and supply means healthy profits can be made.
Commenting on research published by the Halifax in 2001, Martin Ellis, Group Economist at the Halifax said:
"... what is crystal clear is that housing is a very good long-term investment. 80% of all the counties in the UK have seen house prices at least double since 1987."
Where's The Demand For Housing Coming From?
Demand for housing is being fuelled by the social mores and expectations of 21st century Britain. So while there is still a strong market for the 4 bedroom family home, there is increasing demand for smaller housing units to fit the lifestyle and aspirations of a variety of sectors in society: young singles, smaller family units, and an increasing population of older people.
Moreover, despite relatively high costs of living and crowded urban centres the UK continues to attract a stream of immigrants and medium to long-term residents from around the world.
In addition, there is a shortage of 'affordable housing'. The scale of this shortage is shown up by Kate Barker's report for the government which recommends the creation of 17 - 23,000 new affordable housing units annually.
What Are The Prospects For Investors in Property?
Given the history, and present demands, we see a continuing need for both new built housing and carefully refurbished houses in the UK. Investors should look beyond the recent boom and possible lull in housing prices, to the underlying continuing demand for more housing. Investing in property has proved to be a sound and profitable strategy over the centuries, and what's more investors can ramp up their returns by investing with a property company that adds value to existing and new properties.
Why Is Investing In Giroma A Good Deal?
Giroma invests in properties that have not yet reached their full potential.
- The company breathes new life into older buildings, increasing their value through refurbishment.
- We add value to existing property by re-purposing. E.g. increasing the density of housing on a town site, adding to the living space of properties in locations that would attract traditional families, revising the layout of properties so that they will appeal to multi-generational buyers.
- We develop new sites to provide housing for people who have particular, known requirements.
So Giroma takes advantage of the underlying strength of the property market in Britain, and adds value through the development work we carry out.
In Giroma, investors will find a company that is dedicated to finding profitable ways to satisfy people's housing needs. We continue to study the market, think creatively, and develop properties that will fill demand.