Recent figures from the Office of National Statistics revealed that the average cost of renting property has soared to close to nine times the rate of inflation. That’s bad news for tenants across the UK, but excellent news for those seeking buy-to-let property for sale – as demand (and rental yield) has never been higher.
Here’s a few facts about the current rental market and the implications in terms of ROI.
According to the Association of Residential Letting Agents (Arla), the average UK tenant spent close to a quarter of their yearly salary on rent alone last year. The same report also revealed that most tenants will have spent over £50,000 on rent before they can get on the property ladder themselves.
In 2015, rents rose in every region of the country, experiencing an average growth of 3.2% in 2015. This pushed average monthly rent up to £919. In short, it’s an alarming situation for people renting – but a lucrative market for those wanting to invest in property in the UK.
In spite of the spiralling rental prices, demand is still high – with the average property being let within just 20 days of being on the market.
Quite simply, the UK cannot build enough new houses to accommodate its growing population, and property prices are creeping steadily higher – which means increasing numbers of people are unable to afford their own home.
The result? The UK is seeing unprecedented rises in numbers of tenants across the country – and it’s a situation that doesn’t look as though it will abate any time soon.
Less Landlords, More Buyers?
In a bid to help first-time buyers purchase a home rather than rent, the government introduced a series of changes, making it more expensive for landlords to invest in property in the UK. Whilst this seems like a shrewd move on paper, the reality is somewhat different.
Landlords are simply passing on the additional costs to their tenants, which means higher rents. Likewise, fewer people are seeking out buy-to-let property for sale – and less landlords means less available rental properties. This increases demand, enabling existing landlords to raise rents even higher.
Making the Most of the Property Investment Opportunities
For those looking for buy-to-let property for sale, there’s never been a better time to invest. Demand is high, potential rental returns are excellent, and increasing house prices mean that you’re likely to make good money in terms of capital growth too.
If you’re thinking of investing in property in the UK, work with a property investment agent, who will help you find the best possible houses in the right location. Make sure you also focus on boosting your knowledge of the industry; via research, talking to existing landlords, and attending property seminars.
The Buy2Let Shop Limited
If you want to know more about property investment in the UK, and need some help finding the right buy-to-let property for sale, talk to The Buy2Let Shop team. We’re property investment agents in London, and we’re here to help you identify great property investment opportunities. We also offer assistance with buying a house at auction, and host regular property seminars in London.
If you’d like to find out more, simply visit our website today.