According to new research, buy-to-let is continuing to boom in the UK, with landlords benefiting ...
According to new research, buy-to-let is continuing to boom in the UK, with landlords benefiting from rising house prices, rising rents and the cost of borrowing cheaper than ever before.
In 2000, buy-to-let accounted for 4% of mortgage lending, by the second quarter of 2015, this had risen to 16%. According to property firm Savills, landlords have made nearly £180bn in capital gains since 2009 alone. Separate research has suggested that returns from rents and price growth over the past year have hit 8% in some parts of the country.
Savills expects that over the next couple of years, rents will rise by an average of around 2%-2.5% a year. In under-supplied urban areas, such as London and regional cities such as Manchester, it should be upwards of 3%.
Peter Armistead of Armistead Property commented: “It’s not surprising that the sector is booming with the impressive yields, capital asset growth and growing demand for rental accommodation. Manchester has seen yields rise by an average of 4%-5% over the last 12 months and demand is outstripping supply. It takes an average just 14 days to find a tenant and void periods are almost non-existent.
Steve Molloy of Belvoir Wirral agrees.
"In most instances properties are letting in days, rather than weeks, especially 3 bedroom properties. Landlords just need to get the rent right and the condition right"