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International Interest May Squeeze Out Local Buyers in UK

By Allison Halliday | May 20, 2013

Property investment expert Rick Otton is warning that increased levels of international institutional investment in the UK property market, in particular from the US could make it even harder for buyers to get onto the property ladder. An upturn in US business confidence has led to increased investments in the UK property market, with more than £100 million coming from institutional investors in the US since the start of this year.

Rick Otton

Rick Otton is warning that this increased investment combined with a rising market means UK residents may find it even harder to buy their own home. He said "This is yet another example of how buyers, and first time buyers in particular, are being squeezed out of the market. The very thing which makes the UK market attractive to investors is the same thing which makes it harder for people to buy homes. The UK already has a shortage of affordable housing, with millions of people struggling to achieve the dream of homeownership through traditional lenders-the banks. Now that they are up against US international investors as well, it's clear that alternative real estate investment strategies need to be used if they are to get a foot in the door."

The UK is proving attractive to institutional investors from the US due to the growing momentum in the housing market. Some of this momentum can be attributed to new household formation which is growing at nearly 3 times the speed of additional housing.

Mr Otton went on to say "The number of people in the UK who own their own home has been going backwards, with 200,000 less homeowners now than four years ago. We know that it's hard for people to get into the market, and these figures show that it's hard to stay in the market. With increased competition from institutional investors making scarce property less affordable, it's going to be even harder for people to borrow from traditional banks. This is where my alternative strategies will help people get into, and stay in, the market."

Rick Otton’s real estate investment strategies shows people how to get onto the property market without having any existing property equity, a bank mortgage, and a deposit or stamp duty. Those interested in gaining an insight into his techniques can download his Power Property Profits Pack which is available free from his website.

Allison Halliday is a Realty Biz News contributing writer. She handles International Real Estate and is a seasoned blogger.
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