What's Hot in UK Property?

Published - 06 February 2020, Thursday

Everything. But Here is How to Get Tenanted Freehold Property That Will Give you an 8% Tax Free Yield. 

Since Boris Johnson and the Conservatives won the general election in December, UK property prices have taken on a life of their own. With the end of political instability – the Conservatives have the biggest majority since the Thatcher years – British property has leapt back to the top of the global assets list.

The message of ‘Get Brexit Done’ resonated with the British people – to that end the UK left the EU.

According to Rightmove, a PropertyGuru style property website, UK house prices rose over the last two months at the fastest rate on record, as sellers feel more confident about the outlook for the housing market.

The average price of properties coming on to the market jumped by 2.3%, the biggest rise for the period since the website started its house price index in 2002. Nearly 65,000 UK properties were marketed on the platform over the month, with an average asking price of £306,810.

As property in the UK is back in high demand, everyone can now take advantage of these high grade investments. 

Bloem Care, a care home operator from the UK, launched its entry into the care home sector, and by using a Singapore-regulated investment vehicle, investors can now capitalise on care homes through shared ownership through a Singapore private limited company.

Investors receive 8% to 10% guaranteed dividends annually without having to pay any other costs. This also can be over a period of 25 years.

UK care homes are a valuable source of income because:

  • The ageing population of the UK is growing – in the next 17 years, 48.7% of the population will be over 65
  • The number of people aged over 85 will reach 2.2 million
  • By 2026, roughly 14,000 elderly people will be added to the current population, and the current number of beds in the UK care home simply will not keep up with demand
  • Investing in UK care homes produces high investor returns and, through the use of a Singapore-based investment vehicle, investors who put their money in the Singapore company can also earn up to a 30% net capital gain from the sale of the business – on top of the 8% to 10% yearly yield.

In a recent global institutional investment survey conducted by Octopus Healthcare, it was revealed that more than 30% of global institutions would fund healthcare infrastructure.

In the report by UK estate agent Knight Frank, foreign investment will come from different regions around the world and they noted that APAC and North America would lead the way.

Bloem Care will be the operator and they are in the process of acquiring, renovating, and operating additional care homes in strategic areas of the UK to meet the current demand for advanced, quality care environments, and regulatory compliant homes.

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John Gordon

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"Strong fundamentals combined with an ageing population in the UK has made healthcare, and in particular, care homes, a very attractive asset class for investors."- Savills

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