SPPF has a simple and straight forward strategy; we purchase high-yielding residential and commercial UK property asset and hold long term for income. We tend to focus on smaller towns and cities in the north of England as these places often offer the strong yields we are looking for.
“We target existing rentable properties for immediate income and strong chance of long-term capital growth”.
Our team of experts understand the intricacies of the UK property market and are dedicated to finding below market value properties that will also fit our long term rental strategy.
Areas of high regeneration and potential capital growth are the primary focus for asset acquisition. It is in these areas that not only are properties often undervalued, but prices are such that attractive yields can still be achieved.
The UK property market is known globally for its long-term consistent growth, making SPPF perfectly positioned to capitalise on this. Our mission is to provide an investment structure that puts an original slant on the age-old “bricks and mortar” wealth building strategy.
The UK property market
Over the last 100 years UK property prices have consistently appreciated ahead of the rate of inflation.
“According to the UK Land Registry, in June 1980 the average UK property price was £20,044. 41 years later, in December 2021 it stands at £293,000 – a staggering increase of 1461%.”
In addition to this substantial capital growth, had you owned a buy-to-let property over this period, you would have also received 41 years of rental income.
The UK Residential Forecast for 2020, published by Knight Frank, stated that the private rental sector accounted for 4.5 million households and had doubled in size since 2002. We believe this is an ever-growing market that will continue to expand. Our business model leaves us perfectly positioned to capitalise on this future growth.
The average monthly rent in the UK is £980 per month which is an increase of over 35% from 2005 when the average was £640 pcm. Renting is the preferred option for an increasing number or young and middle-aged adults, as now, more than ever, they struggle to get onto the property ladder. This is causing an increase in rental demand which in turn increases rental prices. The Frank Knight UK Residential Forecast predicts there will be a 10% growth in rental prices between 2020 and 2024.
The population of the UK currently stands at 68 million people and is estimated to grow by a further 7 million in the next 10 – 15 years. Demand for property will continue to outstrip supply leading to further surges in the rental market.
“The average monthly rent in the UK is £980 per month which is an increase of over 35% from 2005 when the average was £640 pcm”