Savers turn to new property as UK rates slump

Falling interest rates could reignite interest in UK investment property as savers look to get more from their money, according to a leading consultant. Knight Frank said a residential development, The Waterside, Royal Worcester, was an example of property seeing a resurgence in buy to let investment.

Featuring around 400 homes, a hotel, cafe, and commercial space, the latest phase of the Berkeley Homes development has seen increasing interest from professional property buyers.

Lets for a two-bed apartment have been as high as £795 a month, according to executives, providing a viable alternative to a savings account with a limp interest rate.

Lyndsey Bellingham, of financial advisers Elbey Solutions, added: “Following the recent drop in interest rates many investors are now seeking alternative options to achieve more favourable returns.

“This has offered some relief for the housing market and property looks increasingly attractive compared to keeping your money in the bank.”

Knight Frank experts also said the Berkeley Homes scheme’s quality and location were seeing it maintain investment interest and hold its own in a slumping homes market.

Future phases are expected to be made available, with current property featuring underfloor heating, integrated kitchen appliances and car parking, with remaining homes in the current stage starting at £149,995 ($217,450).

Related posts:

1. Developer preview for UK luxury seaside homes
2. UK developers demanding cut in interest rates
3. Credit Crunch first birthday sees rural property slide
4. Branded Texan homes turn investors from stocks and shares
5. Mixed reaction to decision to hold UK interest rates