If the recent rent increases are anything to go by, now is certainly a good time to be a landlord in the UK. Last year, the country saw a rise of 3.4%; with average monthly rent increasing to £794 in December 2015 – the largest increase in 4 years.
The implications for those looking for buy-to-let property for sale is clear- with the rental market booming, it’s a great time to explore property investment opportunities.
Investing in Property in the UK – Why Now?
2016 looks set to be another positive year for property investors, as the rental market is largely failing to stay on top of demand. Rising property prices mean that many people simply cannot afford to own their own homes – and as a result, are seeking property to rent.
Of course, news of higher rents will not be welcomed by tenants – especially given that the increase is higher than the rate of inflation. However, for landlords, it’s positive news indeed, especially given the forthcoming introduction of higher stamp duty taxes from April 2016.
Rental yields now stand as high as 7-8% in certain areas of the UK, with an average yield being around 4.9% – which presents a solid return on investment. However, if capital growth is also factored in, landlords actually enjoyed an 11.3% return on their investment last year – and again, this only seems likely to increase this year.
Which Areas Experienced the Most Growth?
The eastern part of the country experienced the most pronounced growth; an increase of 7.8% to £831 average monthly rent. However, rental prices in London rose significantly too – to £1,251 per month (an increase of 6.3%). This demonstrates how well investment properties in London are performing for landlords – and shows clearly how desirable the capital still is with tenants.
Other areas of the country are also offering impressive annual rental yields – notably Manchester, Hull, Blackpool and parts of Yorkshire, the West Midlands and the Humber.
Property Investment Opportunities
In light of these impressive statistics, it’s unsurprising that so many landlords are now seeking fresh opportunities in the market. But you should bear in mind that property prices are also on the rise, making it especially important to find a property that offers a solid return.
Buying a house at auction is fast becoming a popular option – as it’s one of the few genuine chances to get an excellent property at a competitive price; though of course, it may require structural or cosmetic improvement. Likewise, working with property investment agents in London or across the UK can help maximise returns – as these agents often have access to properties not currently on the general market.
The Buy2Let Shop Limited
If you’re keen to find out more about investing in property in the UK, and want to make the most of the thriving rental market, talk to The Buy2Let Shop team today. We’re property investment agents in London, and we specialise in locating properties that offer high returns for our clients. We also offer a range of property seminars throughout the year to help build knowledge of the market, and can assist with buying a house at auction too.
To find out more, simply visit our website.