Irish property investors – time to look further afield?

It’s always tempting to stick to what you know. But, for many buy-to-let investors in Irish property, the monthly sums are no longer adding up. Tight regulations, low stock availability, and high prices (especially in Dublin) are all forcing Irish investors to consider new shores. And many of them are looking to the UK. But why?

In short, it’s often far easier in the UK to profit from property. Thousands of investors are already discovering that, with less red tape, higher yields, and lower prices, the UK is the landlord’s land of opportunity.

If you’re on the hunt for your next investment property, here’s five reasons to switch your gaze from the Emerald Isle to the UK.

1. Better yields, lower prices

Property prices in Dublin are at an all-time high – topping €500,000 after a 14% increase in 2021. This is forcing would-be property investors away from buy-to-let, with its relatively large up-front costs. But, in the UK, investors can enjoy the same yields for less – creating an accessible market for first-time investors, and allowing existing landlords to build up large, well-diversified portfolios.

Here’s an example of the average property prices in some key UK cities:

• Liverpool – €241,988
• Sheffield – €260,664
• Birmingham – €296,002
• Manchester – €332,029
• York – €371,414

This means a lower barrier to entry for first-time Irish investors, and an easier route to large, diversified portfolios for experienced landlords.

2. Availability of stock

Stock of residential property has been a problem in Ireland since before the Covid-19 pandemic – and the problem continues to worsen. The number of houses for sale dropped 26% in three years up to September 2022. What’s more, most new developments are swallowed up by institutional investors, further reducing the availability of stock for individual investors to enter the market.

In contrast, the UK has around 1m properties for sale at any one time – both pre-owned and new build. This means that investors are far more likely to find their perfect property in the UK, taking into account their unique budget and goals. Check out some high-yield, vetted UK stock options here to start looking for yourself.  

3. Rent pressure zones 

Unlike Ireland, England has no rent pressure zones (RPZs). Given that inflation in Ireland currently sits at around 8%, and rental increases from properties in an RPZ cannot exceed 2% per annum (as of December 2021), Irish investors will find that their investments will suffer during periods of high inflation.

This makes the UK a more favourable place to invest during times of high inflation (like now, for example). Here's 5 other predictions for the rest of the year for the UK property investment market. 

4. Short-term let restrictions 

There are short-term letting restrictions in all rent pressure zones in Ireland. These dictate:

• No individual short-term let can last longer than 14 days
• You can’t short-term let any property for more than 90 days over the course of a year

While London does have some similar restrictions, the rest of the UK is largely unrestricted, with no limits on short term lets through platforms like Airbnb. This means Irish investors can more easily access the profits on offer with short-term letting in the UK.

5. Company ownership: cheaper & easier in UK 

In 2021, investors set up 47,400 buy-to-let limited companies, double the number incorporated in 2017. And there’s a good reason for this rise – namely, tax efficiencies. While limited company ownership incurs a 25% Corporation Tax for Irish investors, this compares to just 19% in the UK.

But that’s not the only benefit of a limited company. UK investors can also deduct mortgage interest payments from their company’s profits – decreasing their overall tax liability. With limited company investment more attractive in the UK, Irish investors can often buy and sell property more efficiently than they’d be able to back in Ireland. Overall, limited companies can be the difference between profit and loss for your UK property investment. 

Is the UK right for you?

If it’s your first time investing in the UK (or investing at all!), it might feel like a daunting option. But, at GetGround, we’re here to help. Our platform has given over 18,000 investors in 70+ countries all the tools they need to invest in UK property – from searching for the right opportunity, to structuring the investment in a tax-efficient way, and everything in between.

Wondering whether the UK’s the perfect next step for you and your investment plans? Arrange your free GetGround consultation, and find out.