Investors can accrue strong returns from buy-to-let. Some markets are more lucrative for buy-to-let investors, with recently released data indicating that renting to students can provide significant returns, writes Richard Carr.
Changing British market
The Guardian writes that buy-to-let investors earned average returns of 1,400% from 1996, when specialist buy-to-let mortgages were first introduced, until the end of 2014. However according to What Mortgage, the British government has recently introduced a number of measures which could make buy-to-let a less profitable investment strategy for UK-based investors.
But a study conducted by property crowdfunding firm Property Partner indicates that letting property to students can still prove lucrative. Buy-to-let investor interest in this market usually crests at this point in the year, as students are moving through the housing system before starting university, providing landlords with many opportunities to attract tenants. Continue reading →
New figures indicate that average British residential property rental values rose significantly within the year to July 2016.
Many Britons are finding it increasingly hard to step onto the property ladder. According to Letting Agent Today, Tony Williams of property consultancy Building Value recently noted that at present, “the house price to earnings ratio remains around 5.5 times against a long term average of 4.25 times.”
It’s a question that could have a big effect upon the property market and one that Savills is forecasting to happen, writes Commercial and Residential Development Specialist Richard Carr.
A generational thing
Following a trend is common amongst the young generation and in the property market, renting has certainly been the hot trend over the past five years.
Will renting overtake homeownership?
No longer are youngsters growing up and aspiring to become homeowners on the ‘property ladder’. For many young adults their first experiences of living away from home is in rented accommodation at university.
Whilst for those that choose to enter employment after leaving school, the property ladder is proving far too expensive, without a peg up.
Private households set to grow by 1m in next five years