Recent research shows that a third of UK homeowners make more from their property than they do their day jobs. The astonishing results reveal just how lucrative it is to invest in property in the UK, but also emphasise the increasing unaffordability for first-time buyers.
Here’s more information.
Rising House Prices – Property Investment Opportunities?
Halifax’s latest report shows that the percentage of areas where house prices have outstripped earnings (in the previous two years) has climbed from 28% to 31%.
In some areas, this equates to thousands of pounds of profit per month from their homes. For example, in Haringey (which emerged top of the list), homeowners earn £3,810 a month from their property – considerably more than the average salary in the area.
This is due to steep house price rises in the area. Over the last two years, prices have increased by £139,803 on average – which is a dramatic rise.
Where Else is on the List?
Other areas that are proving extremely lucrative to invest in, with property prices soaring above average salaries, are: Harrow, St Albans, Waltham Forest, Newham, Watford, Slough, Redbridge, Three Rivers and Hounslow. All these locations are situated in London or the South-East, and are within commuting distance of the capital.
Whilst there are plenty of property investment opportunities in the South-East, other parts of the country are also performing well. The South-West has seen steep property price rises recently (notably Bristol), as have other areas in East England. The only parts of the UK that have seen earnings outstripping property price hikes are the North-East, Scotland and Northern Ireland.
Good News for UK Property Investment?
The buoyant property market is excellent news for those with existing portfolios in the areas listed above – and indicates strong capital growth. Experts predict that prices are likely to continue rising in many parts of the country, which means it’s a wise idea to consider investing in UK property at present.
However, it’s not such good news for first-time buyers. Climbing prices are likely to force more people into rented accommodation. Many landlords have already noticed this, and are actively seeking buy-to-let property for sale.
Should You Buy?
If you’re considering investing in buy-to-let property for sale, it’s imperative to do your homework first. Find out which parts of the country are performing strongly, and what demand is like for rented accommodation. If possible, work with a property investment agent with insight into the current market – they’ll be able to guide your purchase and help you to generate better ROI.
The Buy2Let Shop
If you’re looking to invest in property in the UK, talk to The Buy2Let Shop. We’re a team of professional property investment agents in London, with expert knowledge of the UK property market. On our books, we’ve got a number of buy-to-let properties for sale, priced competitively and not available to the general market.
To find out more about our range of services, simply get in touch via our website.