House prices continue to rise in many parts of the country, which is good news for property investors in the UK, especially those with an established portfolio. However, it’s not such great news for first-time buyers, as price hikes are making it even more difficult to purchase a property.
Here’s more information, plus the implications for those looking for buy-to-let property for sale.
Widening Affordability Gap
Recent research from Lloyds Bank revealed that the gap between house prices in cities and average salaries is at its highest level since 2008. According to the study, average house prices have risen by 32% since 2012, while earnings have only increased by 7%, to an average of £32,796.
The study also revealed where the most unaffordable locations were for first-time buyers. Oxford came out on top, with Winchester and London in second and third place. Cambridge, Brighton, Bath, Chichester, Southampton, Salisbury and Canterbury were also on the list.
Where are the Property Investment Opportunities?
Lloyds Bank researchers also identified the locations where average salaries weren’t so low compared to average house prices. Stirling in Scotland came out top for being most affordable (compared to salary), with Londonderry in Northern Ireland in second place. Also mentioned were Bradford, Swansea, Durham, Sunderland, Hereford, Belfast, Glasgow and Lisburn.
What Does This Mean for UK Property Investment?
As houses become more unaffordable, more people are driven into rented accommodation, which isn’t great for first-time buyers, but is good for landlords. It’s predicted that by 2025, 60% of London’s population will be renting – which gives some idea of the level of demand!
This ensures a steady flow of tenants for most landlords across the country, with a solid rental yield. Additionally, rising prices are likely to mean more capital growth for long-term investment – another bonus to investing in property in the UK at present.
Buy-to-Let Property for Sale?
Most savvy investors tend to think creatively when searching for buy-to-let property for sale. Rather than browsing in estate agent windows, they tend to explore the following options:
The Buy2Let Shop Limited
If you’d like advice about investing in property in the UK, or help looking for buy-to-let property for sale, talk to The Buy2Let Shop team. We’re professional property investment agents in London, and over the years, we’ve helped countless clients build high-performing property portfolios.
We also offer assistance with buying a house at auction, and host regular property investment auctions, to boost your knowledge of the current market. To find out more, simply visit The Buy2Let Shop website today.