How to get the Most out of UK Property Data as an Investor
Property investment in the UK can be a lucrative way to put your money to work and make a profit. Data has become more important than ever when it...
5 min read · January 2023
Property investment in the UK can be a lucrative way to put your money to work and make a profit. Data has become more important than ever when it comes to real estate investments, as data can give you invaluable insight into market trends and opportunities. However, for new investors, the sheer volume of data available can be overwhelming. The key is to know how to access and use the right data for your investment goals.
In this article, we’ll look at some of the most useful data available for UK property investors, and discuss how to make the most out of it. By understanding the data available to you and knowing how to interpret it effectively, you can make more informed investment decisions with confidence.
- Identify your Investment Goals and Risk Profile
Before you get started, it’s important to consider your long-term investment goals and your risk appetite. Are you looking to invest in buy-to-let property, or are you interested in the speculative side of the property market? Knowing your own goals can help you choose the right data to access.
- Analyse the Market with House Price Data
One of the most important data sources for property investors is house price data. This data can give you an insight into the current state of the market, and can give you some idea of where it’s headed.
The UK House Price Index (HPI) from the Office for National Statistics (ONS) tracks changes in UK house prices. This dataset is released every month, giving an up-to-date overview of the market. The HPI covers the whole of the UK, as well as specific regions. It divides the market into new homes and existing homes, allowing you to compare them.
For a more in-depth look at house prices in a particular area, you can use UK Land Registry Data. This dataset gives you detailed price information for all sold properties in England and Wales. You may also be able to access local housing market data from local authorities, such as the London Borough Property Price Index or the Scottish Property Price Index.
- Get an Overview of Rental Yields with Rental Rate Data
Rental rate data can give you an indication of rental yields in different areas. Rental yield is the return a property investor will make from the rent they are able to charge for a property. By looking at rental rate data, you can compare the rent charged in different regions and decide which areas might offer the greatest yields.
The English Housing Survey is an annual report of the UK housing stock and changing patterns of housing tenure. This survey includes data on private rented sector yields, which can give you an indication of how rent has been changing in a particular area. In addition, HM Revenue and Customs publishes tax return data that includes details of how much is being claimed in rent.
- Keep an Eye on Property Demand with Demand Data
Demand data can help you understand if a particular area is growing in popularity, and can give you insight into the level of competition for a property. You can keep track of demand with Rightmove’s house price index and rental index, which shows the rate of activity for sales, lettings, and new instructions for a region.
In addition, HM Land Registry offers a service called Property Alert, which notifies property owners when there is activity regarding their property. This can be useful for investors looking to buy a property in a certain area and make sure it’s always at the top of their list.
- Track Location Performance with Economic Indicators
To understand how an area may perform in the long term, you can use economic indicator data sources. For example, the Office of National Statistics produces a range of Index of Multiple Deprivation measures, which compare living standards in different areas of the UK. Economic indicators such as Consumer Price Index, Average Earnings, and Unemployment rate can provide insight into the current state of an area’s economy, as well as changes over time.
- Stay Up-To-Date with Property Market News
To make sure you’re up-to-date with the latest data trends, it’s important to stay informed. Online news sources such as the Royal Institution of Chartered Surveyors (RICS) Property Report, or the Savills Stock Market Update can give you an insight into the current state of the market. Additionally, there are numerous blogs and websites that cover the UK property market from a variety of angles, offering you the latest news and analysis.
- Utilise Tools to Make your Investment Decisions
Finally, it’s important to utilise the right tools to make the most out of your data. There are a variety of online data aggregation and analysis services that let you easily access and interpret the data that’s relevant to your investment goals.
For example, SmartPropertyData provides access to over 1.5 billion property records, including rental rate data and house price data. SmartProp can help you identify areas with the greatest potential for investment and analyse the performance of specific properties over time. Other services such as Trulia, Zillow, and Mashvisor provide an extensive range of data and tools for investors.
Data can be an invaluable asset for property investors in the UK. By understanding the data sources available to you and knowing how to interpret them effectively, you can make more informed decisions and have greater confidence in your investments. With the right data and the right tools, you can get the most out of your property investments.