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What Are the Best Property Investment Strategies in the UK?

house with coins

The world of property investment in the United Kingdom offers a myriad of opportunities for both seasoned investors and newcomers. However, navigating this dynamic market requires a well-informed approach that aligns with UK property laws and regulations. In this guide, we’ll explore some of the best property investment strategies tailored specifically to the UK property market.

house and money

1. Buy-to-Let Investments:

Buy-to-let investments have been a staple of the UK property market for years. This strategy involves purchasing a property with the intent of renting it out, generating a consistent rental income, and potentially benefiting from long-term capital appreciation.

Key considerations for buy-to-let investors include:

  • Researching high-demand rental areas.
  • Complying with UK landlord regulations, including licensing and safety standards.
  • Calculating financial aspects, such as maintenance costs and property management fees.

2. HMO (House in Multiple Occupation) Investments:

House in Multiple Occupation (HMO) investments involve renting individual rooms within a property to multiple tenants. This strategy can yield higher rental income compared to traditional buy-to-let investments, making it an attractive option for investors.

However, HMO investments come with specific legal requirements in the UK, including:

  • Meeting HMO licensing standards.
  • Ensuring tenant safety and property compliance.
  • Staying informed about local authority regulations and restrictions.

3. Property Development:

Property development entails purchasing properties for the purpose of refurbishing, renovating, or extending them before selling for a profit. In the UK, property development remains a viable strategy, particularly in areas with high demand for modernized or expanded properties.

Key considerations for property developers include:

  • Conducting thorough market research to identify promising locations.
  • Navigating planning permissions and adhering to building regulations.
  • Efficiently managing project budgets and timelines.

4. Commercial Property Investments:

Commercial properties, including offices, retail spaces, and industrial units, offer diversification opportunities for investors in the UK. This strategy provides potential for stable rental income and capital appreciation.

Factors to consider when investing in commercial properties include:

  • Evaluating location and market demand.
  • Understanding lease agreements and tenant dynamics.
  • Staying informed about property maintenance and management.

5. Property Crowdfunding:

Property crowdfunding platforms have gained traction in the UK, allowing investors to pool resources for property investments. This approach enables investors to access the property market with relatively lower capital compared to traditional purchases.

Investors should exercise due diligence when selecting crowdfunding platforms to ensure compliance with UK financial regulations and transparency.


The United Kingdom’s property market is a dynamic arena that offers a multitude of investment opportunities. Choosing the best property investment strategy in the UK hinges on a deep understanding of the market, a meticulous approach to compliance with UK property laws, and ongoing research.

Before making any investment decisions, seeking professional advice and staying up-to-date with the latest developments in the UK property market are essential. With the right strategies and a strong grasp of UK property regulations, investors can embark on a rewarding journey in the world of property investment in the UK.

If you need any further help with anything property related, feel free to contact us here at Keey 

How to Build a Property Portfolio?

The world of real estate is vast and filled with opportunities. Whether you’re a seasoned investor or a newbie, building a property portfolio can be a game-changer. But where do you start? Navigating the complexities can seem daunting, but with the right guidance, it becomes a rewarding journey. Let’s set you on the path to success!

1. Understand the Basics

Before you jump into property investment, it’s crucial to grasp the basics. A property portfolio is essentially a collection of property investments owned by an individual or company. The goal? To generate a steady cash flow and, over time, appreciate in value.

2. Start with Clear Objectives

Every successful journey begins with a clear destination in mind. Before you invest a penny, determine what you want to achieve with your property portfolio. Are you looking for long-term wealth, a steady monthly income, or perhaps both? Setting clear objectives will guide your investment decisions and keep you on track.

Read Next: 5 Simple Tips to Jumpstart Your Property Business

3. Do Your Homework

Research is paramount in property investment. Delve into market trends, familiarize yourself with property values across various regions, and monitor rental demands. Grasping rental demand, tenant preferences, and the nuances of diversification is essential. These elements significantly influence your investment choices.

4. Seek Expert Advice

While it’s essential to do your research, consulting with experts can provide invaluable insights. Property consultants, financial advisors, and even seasoned investors can offer advice, share their experiences, and help you avoid common pitfalls.

5. Start Small

Rome wasn’t built in a day, and neither is a robust property portfolio. It might be tempting to dive in headfirst, but starting small allows you to learn the ropes without taking on too much risk. As you gain experience and confidence, you can gradually expand your portfolio.

6. Diversify Your Investments

Don’t put all your eggs in one basket. Diversifying your investments across different property types and locations can help mitigate risks. For instance, if one property type or area experiences a downturn, your other investments can help balance things out.

7. Understand Financing Options

Having a clear financing strategy is essential. Whether you’re utilizing your savings, opting for a mortgage, or collaborating with fellow investors, comprehending your financing options is pivotal. This understanding will shape how you procure properties and navigate your property investment journey.

8. Consider the Long-Term

Property investment isn’t a get-rich-quick scheme. It requires patience, dedication, and a long-term vision. Think about where you want to be in 5, 10, or even 20 years. This long-term perspective will guide your decisions and help you build a sustainable and profitable portfolio.

Read Next: Why Sustainable Real Estate is the Future

9. Stay Updated

The real estate market is dynamic and ever-changing. Stay updated with the latest trends, market shifts, and economic factors. Regularly review your portfolio’s performance and be ready to adapt to changing conditions.

10. Have an Exit Strategy

While it’s essential to think long-term, having an exit strategy is equally crucial. Whether it’s selling a property after a certain period or when it reaches a specific value, an exit strategy ensures you have a clear plan in place and can maximize your returns.


Building a property portfolio is an exciting journey filled with opportunities and challenges. By following the tips and strategies mentioned above, you can navigate the world of property investment with confidence. Remember, every investor’s journey is unique. So, take the time to understand your goals, do your research, and most importantly, enjoy the process!

How to Choose an Interior Designer for Your Airbnb

Choosing an interior designer is a very important decision for your rental space. After all, how an Airbnb is furnished can greatly impact your bookings. Interior design projects can be expensive, so you’ll want to make sure you get the very best for your budget.  

So how do you choose an interior designer? Below are ten things to consider before making your decision.  

  1. Your Style 

Although not a necessity, it can be helpful to have a similar sense of style to the designer you choose. This way the whole process will be more streamlined as your designer will have experience in the materials you’re wanting to introduce to your rental. 

However, a good interior designer will be able to adapt to the style and brief you give them. 

2. Your Budget 

Every project has a budget and having an interior designer can help you get the best results for your money. Below are three ranges of budgets: 

  • A minimal budget: Your money is tight so you’ll require creative cost saving from your designer, like upcycling, or revamping your existing furniture. 
  • A decent budget: You have a reasonable budget for your project that’ll allow you to balance quality and cost. You’ll need advice from your designer on where to spend and where to save. 
  • A generous budget: You want the best interior design money can buy with all elements completed to a very high standard. You’ll need a designer you can trust to make the best choices.  

Knowing your budget before looking for a designer can be helpful for your search. For the best results for your rental you’ll want to choose a designer who has experience working with budgets like yours. 

3. The Scale of the Project 

Another important element to consider is the scale of your project. Are you looking to renovate a single room or a whole house? 

The larger the project the wiser it is to choose an interior designer who is experienced in tackling large scale projects. 

Read Now: Airbnb Interior Design Advice: How to Create a Cohesive Space 

4. How Involved in the Process Do You Want to Be? 

Before pairing with an interior designer, consider how involved you would like to be with the project so you can communicate this with your designer. 

Do you want to be making furniture and colour choices or do you want to fully leave the project in the hands of your designer? 

A hands-on client would be wise to choose a more laid-back designer who is okay with their decisions being overruled, so make sure to communicate how you’d like to approach your particular project with your designer. 

5. Reviews and Recommendations 

Before you make your final decision on your designer make sure to ask for feedback from their previous clients. 

This is very common practice in the design world and any good designer will be happy to provide you with references.  

Read Now: Interior Design in 2022: The Best Style for Your Airbnb 

6. Interior Designer or Architect? 

A very common question is whether you need an interior designer or an architect – sometimes this can be a bit of a grey area. 

A general rule of thumb for which one you need is: 

  • Architect: whenever the work required concerns the external structure of the building, like the walls or the roof. 
  • Interior designer: whenever the work includes the design and specification of interior finishes and furniture. 

Anything in between such as internal alterations can really be done by either. If the work needed is just moving a few non-structural walls, an interior designer can work with you. 

However, if the building requires large scale internal alterations it would be better to work with an architect. 

7. Use a Contract 

Having a contract with your interior designer is very important so you both have a clear outline of what to expect from each other for the duration of the project. 

Your designer should have one they use with all of their clients and sometimes this can simply be an outlining letter which includes their fee. 

8. Do You Need a Local Designer? 

For most projects you want to look for a designer based within the 20-mile range of your rental. But this is very much based on the scale of your project.   

For large and long-term project where your designer will need to visit the site regularly it makes sense to choose a local designer. 

However, depending on the project some interior designers can work remotely. If you simply want a few drawings as guidance for a room and nothing more, a remote designer could be perfect for you. 

9. What’s the Time-Frame for Your Project? 

When selecting an interior designer be clear with your expectations for the project being completed. 

The deadline for when you need your rental fully furnished might not match up with your chosen designer’s availability, so make sure to be communicative about the urgency of your project from the start. 

Read Now: 3 Reasons Every Landlord Should Use an Interior Designer 

10. Do You Get On? 

An often-overlooked aspect of choosing an interior designer is whether or not you get on with them. No matter how much you like their design style, if you can’t establish a good working relationship with your designer it’ll make the whole process harder than necessary. 

For more interior design advice for your Airbnb, contact our experts at Keey today! 

Is Buying an Airbnb Tiny Home a Good Investment?

Hosting on Airbnb is becoming ever more popular. With the rise in staycations since Covid began and Airbnb CEO Brian Chesky’s prediction of “a travel rebound that’s unlike anything we’ve ever seen,” now could be the time for you to dip your toes into Airbnb rentals.  

One way you may decide to venture into Airbnb is by investing in a tiny home. They’re the smallest rental properties you can buy and are highly favoured by potential guests. A tiny home could be the perfect option if you’re not looking to make a huge purchase for your first Airbnb. 


What is a tiny home?  

Tiny homes are small homes that have a minimalist design. They’re usually between 80 and 400 square feet. The tiny house movement is an architectural and social movement that supports the downsizing and simplifying of your living space.  

The movement gained traction after the 2008 financial crisis when many started looking for cheaper alternatives to traditional homes. A tiny home could cost you anywhere between £35,000 – £60,000 or if you’re just looking to buy the shell of a tiny home and furnish the rest yourself, between £12,000 – £15,000.  

Read Now: How to Get Positive Reviews on Airbnb 

The pros and cons of investing in an Airbnb tiny home 

Before making the plunge and investing in a tiny home, it’s wise to be fully informed of the risks and benefits and to seek the guidance of a financial advisor. Below we have listed a few pros and cons to a tiny home investment to help you with your decision.  

The pros 

The main advantage of a tiny home investment is their affordability but they’re also extremely cost effective due to their size. A smaller home with less lights to power and less space to keep heated means your running costs will be much lower than a traditional rental property. There’s also the option of running your tiny home completely off grid with solar panels for electricity and a wood burning stove for heating.  

Another advantage of a tiny home rental is their increasing popularity as Airbnb reported tiny homes trending up 112 percent and 85 percent from 2019 to 2020, respectively. So, with the right property management you’ll be able to generate a positive cash flow

Read Now: How To Make Your Airbnb Property More Environmentally Friendly 

The cons  

One of the main challenges of a tiny home investment is finding the right financing. Home loans aren’t structured to accommodate small amounts of money so unless you’re able to fund your tiny home outright you’ll need to open an motorhome or personal loan.   

How to ensure your tiny home’s success on Airbnb 

If you do decide to invest in a tiny home there a few factors you need to take into consideration to ensure your success as a host. Your top priority should be ensuring your property is rented out enough to make a profit on your investment. Below are a few elements to consider that will affect your rental’s cash flow:  

  1. LocationLocation is very important when investing in an Airbnb. You want to choose an area that will be popular throughout the year and not just in the high season. Do some market research and see where the highest-rated tiny homes on Airbnb are located.  
  1. Airbnb regulations – Once you’ve chosen your location it’s important to check the local Airbnb regulations of the area. Make sure that short-term rentals are legal and that you can rent all-year round.  
  1. Insurance – Landlords are responsible for ensuring the property is safe to be lived in, so if a guest is injured on your property, you could be liable. It’s important to have an insurance protection plan for any incidents that may occur. 
  1. Essential amenities – To attract potential guests you need to supply all of the essential amenities and to stand out you should look into supplying luxury amenities at your Airbnb. This will lead to five-star reviews and a greater guarantee of bookings. 

Read Now: What Amenities You Need to Supply as an Airbnb Host 


For first time hosts, purchasing a tiny home to rent on Airbnb is a great investment option. It’s a cost-effective and affordable property which can generate a high rental income when managed efficiently. With the demand for tiny home rentals on the rise, now is a perfect time to enter the market. 

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For further advice on your Airbnb investment, contact our team of experts at Keey. 

A Comprehensive Guide to Capital Growth vs. Rental Yield

Making a start in property investment can be nerve-wracking. There are so many terms to consider through this journey that the average Joe may be unfamiliar with. Two of those terms that are integral to understand are capital growth and rental yield. 

Some of the common questions asked surrounding these two terms usually start with: 

  • Which should I focus on more? 
  • Will there be an immediate return on investment?  
  • Or, is it more important to look to the future? 

However, it’s a little more complex than one being better than the other. It oftentimes comes down to personal circumstances as one money making strategy might not work for all. 

Capital growth and rental yield are both some of the most crucial factors of property investment success. The property industry’s lingo can often come across as a little intimidating. However, believe me, it is actually far simpler than it seems. By expanding your real-estate knowledge, you’ll be able to make the best money-smart decision for you.  

This article will help calm some of your anxiety surrounding property investment! It will break down and explain in detail what capital growth and rental yield are and how to calculate them. 

What is Capital Growth? 

Capital growth is also referred to as capital appreciation, and this is often the way that most people look to make money from their properties. At its most simple level, capital growth is the increase in the value of something over time. 

In theory, if you buy a property for £200,000, in 5 years you could sell your property for £250,000, depending on economic factors in the UK. With this example, you would have profited £50,000. 

Studies show that the UK property market has been on an upward trajectory for the best part of ten years, and aside from momentary dips, those who purchased back in 2011 may have seen considerable capital growth on their property investment. 

Capital growth is something that every property investor should keep in mind when it comes to investing in property. Making a wise property choice ensures that you can get the most out of your investment. 

The obvious thing about capital growth is that you can’t expect to have money just by sitting on your property investment forever. In order to see that return on investment (ROI), you’ll need to complete the sale of the property.  

That being said, choosing to profit through capital growth means that it is not a passive means of income and it is not an immediate profit. It is not something one should rely on for a huge pay-out right away – it is an investment in your future more so than anything. 

Can I Calculate Capital Growth? 

Capital growth is a relatively speculative figure. It can be hard to pin down an exact value for your property because it can be so dependent on external factors like the housing market and depreciation. So, while it is possible to calculate a ballpark figure that you can work with, it is important to note that it is incredibly subject to change. 

To calculate the percentage of capital growth, follow these simple steps: 

Step 1:  Work out the difference between the price you paid for the property and the price you are reselling the property for 

Step 2: Divide your profit by the original cost of the property 

Step 3: Multiply the answer by 100 to get the percentage. 

Here’s an example is broken down for you:  

  • Original cost of bought property = £200,000 
  • Current value of property = £250,000 
  • Profit = £50,000 
  • Divide profit (£50,000) by original cost of property (£200,000) 
  • Answer = 0.25 multiplied by 100 
  • Answer = 25%  

The capital growth of your property has grown by 25% over a period of [x] amount of time. 

There are also great tools online that can help you work out capital growth. For example, you can use a chrome extension called Advanced Property Insights. This works on many mainstream property websites and shows you deeper insights into the RIO for different properties. 

In terms of the optimal range, there actually isn’t really a ‘good’ percentage of capital growth, because any increase is beneficial. Although, if you were to consider price growth over the past 10 years, the average annual price increase works out at around 4.14%. 

How Can Capital Growth Increase? 

There are a few ways in which the potential capital growth of a property can increase. These include: 

1. Increase in the property market.  

This is the most hands-off approach to growing your properties capital. You don’t actually have to do anything at all to the property itself. It is just a case of holding off on selling until the market value increases. You can make quite good money from doing this. 

However, a downside to this method is that it is all about timing. Property values cannot always be guaranteed to rise. If this is the method you choose to go with, it is imperative that you consider the external factors that may increase the market value over time. These are things like high growth areas, good transport, or local investment.  

2. Improving the property’s value. 

You can improve your capital growth by making your property more valuable. This can be through small scale renovations, such as replacing appliances or updating a room or it could even be something as simple as getting a better real estate agent to sell the property.   

You could also have better marketing for the property or better photos on the advertising. This makes it look more valuable and entices more viewings and increases the potential for selling. 

3. Buying the property under market value.  

Oftentimes, homeowners decide to sell their property due to personal financial circumstances. Therefore, you may be able to bargain yourself below the current market value so the property owners can get a quick sell.  As you would have scored yourself a great deal buying for less than its market value, you’ve already made money on top of your purchase. 

4. Through development. 

You can greatly increase your capital growth through major renovations or constructions. For example, this could be something along the lines of buying a plot of land and then building a house on it or building a pool in your back garden if you have the space. These kinds of developments make properties unique and bolster the selling price, meaning that you have a greater chance of making a higher profit. 

What is Rental Yield? 

A rental yield is the amount of rent you are expecting to accumulate from your property or properties within a standard year. There are many external things that can affect your rental yield, and this includes the area your property is in, property prices, interest rates, rents, and tenant demand

Rental yield is a crucial figure to consider before you buy a property with the intention to rent. It is important to calculate the percentage of rental income you could receive beforehand in order to assess whether a property would be a good investment or not.  

Typically speaking, a good rental yield in London is between 5-8% of the cost of the property. A solid rental yield should be high enough that your total rental income covers all the necessary costs of running your property or properties while making a profit. 

For example, you need to know whether you can afford to cover the cost of your buy-to-let mortgage. Knowing your rental yield before you buy a property helps you to know whether the mortgage payments would be attainable to upkeep. 

Elements like property management costs should also be kept in mind, as you don’t want to have to find an alternative or emergency funds to cover any costs you could incur from letting your property. 

You want to make money as a landlord, not lose it! 

So How Do You Calculate Rental Yield? 

Calculating rental yield on a property that you own is very easy to do. There are two forms of rental yield: gross and net

Gross Rental Yield 

Calculating gross rental yield is easy. First, you need to find the total of a year’s rent on that particular property. Then, divide this number by the total property value. Finally, you need to multiply that figure by one hundred. This produces a percentage, and this is your gross rental yield.

Here’s an example is broken down for you:  

  • Original cost of bought property = £350,000 
  • Annual rent income = £14,400 
  • Profit = £50,000 
  • Divide annual rent income (£14,400) by original cost of property (£350,000) 
  • Answer = 0.41 multiplied by 100 
  • Answer = 4.1% gross rental yield. 

There are also free rental yield calculators online if you need to double-check your calculations. Such as LandlordVision or Douglas Allen

Net Rental Yield 

Working out the net rental yield for your property is a more accurate and precise calculation to show the total profit you make on your property through lettings.  

The net rental yield calculation includes your property’s running expenses (bills and/or mortgage payments) as well as covering wear and tear, general repairs, insurance and agent fees. 

In order to calculate net rental yield, and work out how viable an investment decision is, simply subtract annual expenses from the annual rental income, and divide this result by the total cost of the property. Then, you need to multiply the result by one hundred to produce your net rental yield percentage. 

How accurate are my calculations?  

If you don’t already own the property, and you’re trying to calculate the rental yield for a potential property investment, you may find that these calculated figures aren’t super accurate. That’s because you don’t necessarily know the exact figures yet of your new rental.  

For example, you won’t know for certain the upkeep expenses of the property or even how much you should charge your tenants for rent. 

Therefore, it is important to keep in mind that anything you calculate for a potential rental property is estimated and subject to change. You should also be aware that your rental yield calculation is only as accurate as of the numbers you put into it

The highest rental yield is not necessarily the most important factor in having a successful rental property. Yes, a high return on investment is great, but you also need to consider other factors to boost your investment returns. 

Check out things like the area you may purchase in, the type of tenants you want to rent to, the length of the tenancies you may get. All of these can affect your overall RIO. 

How to Increase Rental Yield? 

There are a few ways in which you can increase your annual rental yield. These are actions that you can take if you are losing money on your property or properties. For example: 

  1. Increase the rent. 

    This is not an endorsement of recklessly increasing the rent you charge to your tenants. However, check the general market rate for your specific area. If the rent level you have set is lower than this amount, you may be able to increase it. However, you will need to ensure that this is permitted within the Assured Shorthold Tenancy Agreement. 
  1. Cut the rent rate. 

    This may seem contradictory to the previous point, but it may make sense for your situation. If the rent level you have set is above the general market rate, it will be harder to retain longer-term tenants. You need to ensure your rent is reasonable enough for the area and amenities you are offering. Lowering it may encourage tenants to rent from you and can help to keep your income consistent.  
  1. Update your property. 

    You may be able to increase your rental yield by updating your property. This can be through updating appliances, paint work, or furniture. It can even be updated through making the property pet friendly. By adding or changing alluring qualities to your property, it may warrant a slight rent increase but is more so likely to keep tenants in the property for longer. 

On a similar note, purchasing newer furniture and appliances for your property may make them more reliable and durable. Having things at the beginning of their life cycle is more likely to last longer, reducing your replacement or maintenance costs. 

Should I Focus More on Capital Growth or Rental Yield? 

Whatever RIO you choose to focus on is very dependent on how you want to make your money back. If you’re someone who is wanting to make more of a passive income, you should perhaps focus on rental yield – that’s if you find good property managers to do the work for you of course. 

 Although, if you aren’t looking to make your RIO straight away and are considering a more so longer-term strategy, then it may be worth you focusing on gaining through capital growth.  

With capital growth, you are resting on the belief that the economy is improving, and house prices are rising. So, you might consider the past performance of an area and future forecasts more than the current tenant demand.  

However, with rental yield, you are betting against an increase in housing prices and interest rates. Therefore, you want to be on the level with your tenants. You need to know what tenants want and are looking for, and more importantly, which locations deliver these. 

But in reality, there is no real simple comparison of one RIO strategy being better than the other.   

It could be worth considering both options before ruling one out over the other. Who’s not to say you can’t do both – rent out your property with the intention of gaining capital in the next few years. 

Our thoughts 

When considering entering the space of property investment, it is important to compare both capital growth and rental yield. You should carefully consider what your goals are. This is because which facet of income you want to focus on is dependent on what your goals are and where you are on your journey. 

There is a risk with property investment in the same way that there is a risk with any investment. You have a better chance of succeeding in the market if you have all of the information, so make sure you keep doing your own extensive research! 

While it is clearly important for landlords to make money, it is also important now more than ever in a post-pandemic world to charge fair and affordable rent for your property. 

If you have to charge high and unaffordable costs for either strategy to make your investment worthwhile, it probably isn’t the best choice to invest in that particular property. 

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The correct advice can be integral in making the right choices in property investment. Feel free to reach out to us here at Keey, where we have experts ready to answer all of your questions! 

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