Risk Warning

Investing in property puts your capital at risk. You may get back less than you invest, and in some circumstances you could lose the whole of your investment.

The value of property and the level of rental income can fall as well as rise. Past performance is not a reliable indicator of future results.

Rental income is not fixed and is not guaranteed. It depends on demand, on the condition of the property and on the tenants in it at the time.

• Rooms may stand empty between tenancies, and a void period produces no income while the costs of holding the property continue.
• Tenants may fall into arrears, and recovering arrears can be slow, costly or unsuccessful.
• Achieved rents may be lower than the rents assumed in an appraisal, and rents can fall as well as rise.

Houses in Multiple Occupation carry additional risks, including licensing requirements, planning and Article 4 restrictions, void periods, higher management and operating costs, and the risk that a planned refinance is not achievable on the terms expected or at all.

A licence may be refused, granted with conditions that cost money to meet, or withdrawn. Planning permission may be required and may be refused. Licensing regimes, Article 4 directions and space and amenity standards are set locally and can change, including after a property has been bought.

Where an investment depends on converting or refurbishing a property, the works themselves are a risk to the outcome.

• Programmes slip. A delay pushes back the date income starts while finance costs continue to run.
• Costs overrun. Quoted figures are estimates, and materials, labour and unforeseen structural work can exceed them.
• A contractor may fail to perform, may perform badly, or may become insolvent part-way through a project, which can leave works incomplete and require a replacement to be appointed at additional cost.

Where an investment uses borrowing, the availability and cost of that borrowing is outside our control and outside yours.

• Interest rates can rise, increasing your payments and reducing or eliminating net income.
• Finance may not be available at all, or may be offered on terms materially different from those assumed.
• Whether finance is granted is the lender's decision, made on its own assessment and criteria.
• A planned refinance may be unavailable, may be delayed, or may release less capital than anticipated, leaving more of your money in the project for longer than expected.
• A refinance depends on the valuation reached by an independent valuer instructed by the lender. That valuation may be lower than the figure assumed in an appraisal, and neither we nor you can direct it.
• Where a lender requires a personal guarantee, your liability may extend beyond the property itself to your other assets.

Tax treatment depends on your individual circumstances, on where you are resident, and on how you hold the property. It is not the same for every investor, and it can change.

Tax rules, property legislation, licensing regimes, tenancy law and building and fire-safety standards can all change, including retrospectively in their effect on a property already owned. Changes may increase costs, reduce returns or require works to be carried out.

Insurance does not cover every loss. Policies carry exclusions, excesses, limits and conditions, and a claim may be reduced or refused. Some risks, including loss of anticipated profit, are typically not insurable.

The performance of a letting or management agent affects occupancy, arrears, maintenance costs and compliance. A managing agent may underperform, may cease trading, or may need to be replaced.

UK property is priced and let in pounds sterling (GBP). For UAE-based investors, movements in the GBP exchange rate can affect the value of your investment and income when converted to your home currency.

Property is an illiquid asset. It can take time to sell, and you may not be able to access your capital when you want to, or at the value you expect.

Every forward-looking figure on this website and in our documents - rent, cost, yield, valuation, refinance position or return - is an estimate based on stated assumptions. Projections are not guarantees, forecasts or promises of performance, and actual results may differ materially.

Some of the information we present comes from third parties, including sellers, sourcing partners, contractors, agents and valuers. That information may not have been independently verified by us. You should satisfy yourself, through your own advisers, of anything you intend to rely on.

Nothing on this website is a personal recommendation or advice to invest. You should obtain independent, regulated financial, tax and legal advice before making any decision.

InvestInUK is a trading name of UniEstate Properties UK Ltd, registered in England and Wales under company number 16762422. Registered office: 203 West Street, Fareham, Hampshire, PO16 0EN.

InvestInUK may receive fees or commissions from property sellers, sourcing partners and independent service providers. Relevant arrangements will be disclosed before a purchaser makes a commitment.

If you have any questions about these risks, contact us at enquiry@investinuk.uk before proceeding.