The choice is not that great. Depending on your optimal risk profile, there are two main types of investment property in the UK.
The first is housing under construction. The entry threshold is from £200 thousand. Income comes after the project is put into operation. Long-term lease through a management company will allow you to earn 3-5% per annum. You can increase the percentage by renting out housing in central areas for a short term.
In both cases, the costs of management, maintenance, repairs and insurance are borne by the owner of the property. When buying an apartment, you must pay a tax – Stamp Duty Land Tax (0-17%). All this ultimately affects the net profitability.
The second option is cottages in country hotels. This option is interesting primarily due to the low entry threshold – from £145 thousand ($180 thousand) and higher profitability – up to 8% per annum, which is also fixed in some projects (up to ten years) and indexed to the inflation rate.
In such projects, investors are offered ready-made objects, which means that income can be received immediately. Plus, a buyback option is offered.