Buy-to-let property investments have long been a go-to for both newer and more established investors. With options to suit the majority of budgets, it’s no wonder that many people lean on this method to make money through property. However, this can result in higher competition, and so investors are looking for new and different opportunities to expand their portfolios. We’re here to introduce some of the most lucrative trends in UK property, from sustainability through to co-living and marinas. As society and consumer behaviours change, so do the spaces they want to live and spend time in, and that’s clearly reflected in these new niches that provide great opportunity for savvy investors wanting to get ahead of the curve.
Sustainability Focused Properties
With pressure being put on every part of society to reduce their environmental impact and make their lives or businesses more sustainable, this is also the case with property. Whilst there are already legal EPC rating minimums you need to meet if you are a landlord to show that you are committed to reducing the carbon footprint of your property, it’s expected that sustainability-related policies are only going to get more stringent in the years to come. Ethical investing is on the rise, and now is your time to capitalise on it.
Along with this, potential tenants are also increasingly looking for eco-friendly properties, not only as people are becoming more educated on the climate and what they can do to help, but also because of the rising costs of energy. The general cost of living is increasing, and so people want to know that the property isn’t going to cost a fortune to live in.
So, you have a few options here to really capitalize on the increased demand, and requirement for, eco-friendly properties. You could either invest in an off-plan property that isn’t yet built, but is focused specifically on sustainable features throughout, or you could invest in BMV properties (below market value) with a property investment agency like CityRise, and with the capital you’d save from the lower purchase price, utilise that to focus on sustainable renovations, including:
- Thorough insulation throughout the property, including the roof, exterior wall, floors, and then general draught proofing
- Changing the windows for triple glazing
- Investing in solar panels
- Purchasing energy efficient appliances, including an energy efficient boiler
- Having a smart meter installed (often free)
Sustainability has been a hot topic for a while, but now is the perfect time property wise to invest in a property that will meet ever changing criteria and also provide a lucrative return on your investment.
Co-Living
Another type of residential property that you can invest in to get ahead of the curve is co-living spaces. As we already mentioned, the cost of living is hitting people, and so often it’s no longer viable for people to live in urban, built up areas without paying a small fortune. However, co-living spaces are helping to bridge the gap for people wanting to live centrally, but without having to compromise on everything else in their life in order to do that.
Co-living spaces are a type of housing that have private living areas but with shared amenities, so people would have their own bedroom and potentially bathroom, then would share communal spaces like kitchens, living rooms and recreational areas. The kind of co-living spaces that are increasingly being built are high-end spaces that really feel like luxury, but whilst still being reasonable. Not only are people buying into the reduced costs, but also the community these spaces create and also the flexibility that they offer. Often contracts offer more flexibility with rolling options and no long term commitments.
As a result, the demand for these spaces is high, and with high demand and low supply comes good money. This being said, there are currently 6,500 co-living units under construction, so this is a great time to get involved and look into investing in these properties to make sure you don’t miss the boat and invest when supply is higher. Depending on the development, you may own a specific unit and it’ll be rented out on your behalf, or you may just own a share of the development and take a portion of the profits. With more and more people, particularly young people, moving around the world and wanting to gain flexibility without committing to long term tenancies, it’s just a great time to get involved in this type of investment.
Marinas
We’ve certainly left our most niche emerging investment trend until last, which is marinas. Marinas are providing a compelling opportunity for people wanting to diversify their portfolios, as marinas are offering people more flexibility and freedom in terms of their lifestyle, and most importantly for many in a cost of living crisis, better affordability. This lifestyle is very relaxed and community focused, with many loving the fact they can live right in the water, which is a particularly lucrative area.
From urban canal networks through to sunny seaside marinas, there is a growing stock of barges and boats with limited storage facilities. Many of the most urban areas of the UK, including London, Manchester and Birmingham are utilising their canal networks to provide a unique living opportunity for people.
The opportunities for income are diverse across marinas, from slip rentals maintenance services, even expanding to on-site retail and hospitality. If you’re interested in this area, we’d recommend getting in touch with a specialist in these types of investments, who will be able to guide you through the process and discuss the different options, including the direct purchase of existing marinas, investing in marina development projects, or by purchasing a berth or mooring.
Final Thoughts
With buy-to-let investments getting increasingly popular, looking at alternatives to make sure you’re making the best investments for your portfolio is key to long term success. Sustainability, co-living and investing in marinas are all viable and exciting areas that should be considered for your next opportunity.
