4 alternative ways to invest in UK property on brick background

4 Alternative Ways to Invest in UK Property


There’s no denying that property can be a great long term investment. Investors have made a fortune investing in UK property in the past, and many will in the future too. For most, though, the problem with direct property investment is that it can come with a lot of hurdles.

Firstly, UK tax laws brought in recently have made the tax system less favourable towards landlords. On top of this, you have the prospect of actually being a landlord and the hassle that comes with it. Finally there are the hefty deposits that are being asked on buy to let mortgages these days.

With the above in mind, we thought we’d suggest 4 alternative ways that you can invest in UK property. These could help you avoid a lot of the potential hassle and problems that generally come along with property investment.   

Lend to Other Property Investors

Our first alternative way to invest in UK property is lend to other property experts. These often need short-term funds to move forward with new projects.

Peer to peer lending has grown in popularity in the UK. Companies like Kuflink and easyMoney allow you to lend money to property experts and gain a good rate of return for doing so.

When you invest with easyMoney or Kuflink you can also enjoy the tax benefits that come along with ISA investments. This is because they offer an IFISA option, so any income or capital gains will be subject to UK tax relief.

Invest Via a REIT

Investing in a REIT (Real Estate Investment Trust) is probably the most well-known of our alternative ways to invest in UK property. That being said, it certainly doesn’t mean that you should ignore the option.

Investing in property via a REIT holds potential benefits for many types of investor – especially income investors. There are many different types of REIT available to investors. Each of these is focused on different segments of the market, so you can choose which one you are most interested in.

Buy a Share in a Property

Nowadays, it is very easy to invest in property online without having to deal with all of the aspects that usually make owning a second property a nightmare for most investors.

Some websites allow you to buy shares in a property along with other investors by crowdfunding. You can then have your share of the income from the property paid out directly to you as a monthly dividend.

You can also realise any capital growth in the value of the property. Most crowdfunding for property companies value their properties regularly using chartered surveyors. Any increase in value is likely to be reflected in the price of the shares that you own. You can usually exit from your investments simply by selling your shares in the property.

Invest in Homebuilders

Our final way to invest in UK property without actually buying a house would be to invest in UK homebuilders.

As a general rule – do your own research – when the property market is performing well, homebuilder shares tend to follow suit.

If you want to invest in UK property this way, it’s important to take a look at the prospects for the big UK homebuilders. This should help with your decision as to which one has the most potential. 

No Deeds, No Hassle

Here we’ve mentioned just 4 alternative ways to invest in UK property. We hope you’ve found them useful and that one of them proves to be the right option for you. While the above options may not mean that you hold the title deeds to a property outright, for a lot of investors this can be a blessing in disguise. It allows you to take advantage of the potential benefits of property investment. All without having to deal with the hassle that often comes along with it.

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