UK house prices have shown the strongest performance in the past 20 years, surpassing countries like Australia, Hong Kong, Malaysia, Singapore and the US.
Source: Abelson & Chung, ABS, REIA, NAPIC, Data.gov.hk, URA, HM Land Registry, Economic Research Division, Federal Reserve Bank of St. Louis, & RBNZ. IMAGE: CSI PROP
Financial downturns have done little to dampen the spectacular growth of the UK housing market since 1952. This is because one of the UK’s biggest issues has been the critical lack of housing — research shows that the UK is facing a shortage of 4 million homes! There is a need to build approximately 340,000 houses a year until 2031 to balance demand and supply. At present, the construction sector is only able to build 200,000 houses a year.
This undersupply has driven housing values across the country, resulting in maintained growth even in the face of Brexit. In 2018, housing values increased by 2.7% on average and by 6% – 8% in growth areas, quite unlike the 2008 financial crisis, where market values remained relatively stagnant until 2013.
Source: House of Lords, UK
POUND AT ALL-TIME LOW
Did you know that Malaysians enjoy higher basic tax relief in the UK than in Malaysia? Malaysians who own UK property (but do not work / earn regular income in the UK), can enjoy up to RM5,000 rental income every month without paying tax.
Investing in UK property provides rewarding returns, and with the pound at a low, there are higher margins for yields. Below is a current comparison of the returns from a Malaysian property vs UK property.
ILLUSTRATION OF RETURN ON INVESTMENT PER YEAR
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