| The overwhelming majority of landlords are planning to expand their portfolios this year to take advantage of rock bottom prices and surging rental demand according to International Property Success (IPS). Its figures show that confidence in buy to let property investment is currently very high with only 10 percent of investors believing it is a bad time to invest in property. IPS has used the 15th anniversary of the official birth of buy to let in the UK to highlight the fact that the sector shows little sign of slowing down and has drawn up a list of reasons which explain why it’s a good time for investment. 1. Banks are more than willing lend money to landlords. Banks lent £3.5 billion to landlords between April and June, the highest level since 2008. 2. 40 percent of residential landlords have reported that tenant demand is growing or booming with just 4 percent reporting a decline. 3. According to a recent survey by Assetz, nearly half of those landlords who took part in its survey are achieving yields of 5.5 percent with almost a fifth achieving yields of 9 percent or higher. 4. Buy to let has helped transform the UK property landscape into a strong, reliable market and a relatively safe haven for investors, compared to the tumultuous equities market. 5. Buy to let investors are often accused of helping create the housing bubble that contributed in part to the credit crunch of 2008, however those property investors have helped bring improvements to the private rented sector, which may not otherwise have been possible. Fifteen years ago, the sector represented just 7 percent of all housing, now one in six households belong to the private sector, underlining the strong fundamentals of the sector. 6. Stock markets may be tumbling now, but the inexorable rise of the UK buy to let investors profiting from property shows no sign of decline. In fact many are cashing in on rising rents which rose 2.1 percent in August this year with the average tenant now paying £713 per month in England and Wales. 7. Demand for housing is unlikely to decline in the UK anytime soon due to the shortage of supply and the lack of mortgages for first time buyers and those without substantial deposits. This can only mean further rises in rental yields until banks feel more confident to offer realistic deals to first-time buyers and those struggling to move up the housing ladder. 8. Buy-to-Let lending increased by 21 percent during the second quarter of this year demonstrating strong growth in the sector. 9. If you’re a landlord in Wales, you may well be reaping an investment windfall with yields averaging 7.7 percent. The same applies to those landlords in Yorkshire and Humber where yields are currently 7.6 percent. How many savings accounts pay this in interest? Don't miss out and speak with our experts today about the wealth of invesment properties we currently have on offer. Call us on 0118 955 9712 or email us at plicourinos@prospectinvestorsclub.co.uk Source-Residentiallandlord.co.uk |
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